Photo: Ministry of Energy and Natural Resources
Investors in photovoltaic projects were mostly willing to pay large sums at Turkey’s latest YEKA auction to secure a minimum guaranteed price for five years, followed by 20-year power purchase agreements. The government earned EUR 84.8 million overall from the secondary bidding for 650 MW, split into six areas. One zone is for a floating solar power plant.
According to Turkey’s Minister of Energy and Natural Resources Alparslan Bayraktar, domestic electricity demand is on a trajectory to triple to 1.05 PWh in the next 30 years. It follows an almost threefold jump of the last two decades, while natural gas is rising even faster, he pointed out.
The minister has urged investors to keep up the momentum, noting that the national goal for 2035 for solar and wind power is 120 GW in total.
One of the pillars of the government’s measures to incentivize such endeavors are renewable energy auctions. Notably, the obligatory domestic content rates are high, to boost manufacturing in the sector.
The latest solar power auction under the Renewable Energy Zones (REZ) state support mechanism even brought substantial earnings for Turkey, for the second time. The bidding was initiated at the ceiling price, EUR 55 per MWh, and when the floor level was reached at EUR 32.5 per MWh, the remaining competitors were switched to another auction.
They offered so-called contribution shares, starting at a stunning 10,000 per MW of planned connection capacity. The quota for the REZ SPP 2025 (YEKA GES 2025) round was 650 MW, split into eight zones. Two zones were taken off the table after the call, due to delays in permitting.
Highest fee was EUR 285,000 per MW
In total, Turkey cashed in EUR 84.8 million or EUR 130,400 per MW of connection capacity, excluding value-added tax.
The Eskişehir zone, 260 MW, went for EUR 105,000 per MW to Efor Holding. The company was successful at the previous wind power auction as well, early this year.
Stone Enerji won the Erzurum 1 segment, of 100 MW, by pledging EUR 100,000 per MW. Sertaş Turizm took Erzurum 3, at 85 MW, for EUR 120,000 per MW.
The Ministry of Energy and Natural Resources included a floating solar power plant project for the first time
The 50 MW Bolu zone went to Ecogreen Enerji. The company is paying 44,000 per MW, the least of all winners.
Kahramanmaraş, of 40 MW, was awarded to Güçlü GES Enerji. It pledged EUR 285,000 per MW, which was the highest contribution fee. Aydede Enerji has obtained the Mardin zone for EUR 208,000 per MW while Zincir GES Enerji managed to win the Van solar power project for EUR 187,000 per MW. Both are for 40 MW.
The auction also featured the first zone for a floating solar power plant. Demirköprü Yüzer GES in Manisa province, for 35 MW, was taken by a firm with the same name. It is paying EUR 225,000 per MW, the ministry has revealed.
Solar power auction facilitates USD 400 million in investments
There were 77 applications altogether, from 38 companies.
The winners will be able to sell electricity on the free market for five years. However, they are guaranteed at least their contracted price, which in all cases is the floor price – EUR 32.5 per MWh. The second period, 20 years, is with a power purchase agreement.
Bayraktar estimated that the solar power auction facilitated investments worth a combined USD 400 million. The projected annual output is equivalent to the electricity needs of half a million households.
The minister pointed out that 8 GW of solar and wind power would come online this year in total. The combined capacity on the grid from the two technologies amounts to some 39 GW out of 121 GW overall.
Also of note, the Energy Storage Industries Association (EDEDER) has forecasted that 1.5 GWh of storage capacity would be commissioned next year in Turkey.
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