Photo: Ministry of Energy and Natural Resources
Under the REZ SPP-2024 – YEKA GES-2024 round, companies will bid for six photovoltaic projects in Turkey at predetermined locations. The winners at the auctions get grid connections for 49 years, a minimum price during the initial, five-year open market sale period and a guaranteed price for another 20 years.
The Ministry of Energy and Natural Resources of Turkey will receive applications on January 27 for the next round of solar power auctions. Earlier it said it plans the bidding for the 800 MW in total connection capacity to be held on February 4.
Minister Alparslan Bayraktar noted that the specifications for the wind power auction round of 1.2 GW were published a week ago. The ministry aims to hold tenders for at least 2 GW every year and reach 120 GW of combined solar and wind power capacity by 2035, he recalled.
The auction mechanism is called Renewable Energy Zones (REZ), better known by its Turkish acronym YEKA. Domestic and foreign companies will compete for six photovoltaic projects.
Under the REZ SPP-2024 – YEKA GES-2024 round, winners get grid connections for 49 years. They will compete for predetermined areas in the provinces of Konya, Karaman, Malatya, Van, Antalya and Kütahya.
If more than one participant bids floor price, they must compete by offering contribution share payment
In the first five years after commissioning, operators sell electricity in the open market. However, they are guaranteed at least 4.95 United States dollar cents per kilowatt-hour, the same level as in the wind power auction. It translates to USD 49.5 per MWh (EUR 45.44 per MWh at the current exchange rate).
Companies can send financial bids between 3.25 and 5.5 cents per kilowatt-hour. It compares to the range of 3.5 to 5.5 cents for wind power.
The lowest five proceed to the auction, though the list can be expanded if there are equal bids. The lowest bid is the basis level in the process.
The range for financial bids is 3.25 to 5.5 US dollar cents per kilowatt-hour
To participate, the applicants need to pay TRY 50,000 (EUR 1,336 or USD 1,456) and submit a letter of guarantee of USD 15,000 per MW.
If more than one bidder quotes the floor price of 3.25 cents, an auction will be held between them for a so-called contribution share. The minimum is USD 10,000 per MW and the highest bid wins.
Auction winners will be obligated to submit letters of guarantee worth USD 30,000 per MW.
Karapınar to host another mega PV plant
The largest project is for 385 MW in capacity. The zone, spanning 6.3 square kilometers (603 hectares), is in Karapınar in Konya. The district already hosts one of the largest solar power plants in the world, at 1.35 GW in peak capacity and a 1 GW grid connection. The project was facilitated through the first YEKA auction.
Two provinces neighboring Konya in southern Turkey have new YEKA solar power zones as well. The one in Karaman, in Ayrancı district, is for 200 MW. It spans four square kilometers. The area for a 40 MW project in Gazipaşa in Antalya covers 80 hectares.
The Malatya zone in Eastern Anatolia is for a connection capacity of 75 MW. Located in Darende, it spans 153 hectares. A 90-hectare area, envisaged for 60 MW, is further east, in Saray in the province of Van, which borders Iran.
The sixth location, of 80 hectares, is in Aslanapa in Kütahya in western Turkey. It is for a 40 MW solar power plant.
Storage allowed but for internal use
The winners can install electricity storage units within the sites of their solar farms and at the same metering point. The capacity can’t be higher than the power plant’s.
During the open market sale period, the storage facility can only store electricity from its solar park. The rule is the same for the wind power auctions.
Construction deadline is three years
Auction winners are eligible for a preliminary license. It enables them up to two years to obtain all permits. When it meets all the conditions, the company gets a license. After that the companies have two years to install the solar power plants of under 100 MW, or a maximum of three years for the two larger ones, according to the propositions.
The construction period can be extended by up to one year if the facility isn’t finished in time. But the company would be charged a penalty of USD 10,000 per each day of delay.
Strict domestic content requirements
Silicon-based crystal technology and an efficiency rate of a minimum 20% under standard test conditions are mandatory for the solar modules. The devices must have a domestic content rate of at least 75% after the raw wafer stage.
Auction winners will be obligated to buy modules manufactured in Turkey, excluding free zones, or supplied by domestic manufacturers outside free zones, the document reads.
There is also a 51% minimum domestic content rate for direct current (DC) cables, bearing structures and, if any, monitoring systems.
If inverters also reach the 51% threshold, the auction winning price will be 0.3 cents higher for five years after the end of the open market sale period, the ministry said.
It’s exciting to see Turkey moving forward with the auction procedure for the six Yeka solar power zones! This initiative will undoubtedly enhance the country’s renewable energy capacity. As these projects develop, it’s essential to consider ongoing maintenance for optimal performance. A solar panel cleaning brush is a great investment to ensure that solar panels remain clean and efficient, maximizing their energy output and contributing to sustainability goals.