Turkey launches solar, wind power auctions with November deadlines

The Ministry of Energy and Natural Resources of Turkey issued a public call for solar and wind power auctions for 2 GW in total. It will receive the applications on November 4 and November 18, respectively. One competitive bidding process is for a floating solar power project of 35 MW.

Following the successful auctions for renewable energy projects that were completed early this year, Turkey kicked off another round. It is also for 2 GW of overall connection capacity, in light of the country’s ambition to grow its combined solar and wind power capacity to 120 GW by 2035. The two technologies reached 37.1 GW together a month ago, out of 120.2 GW in total.

Auctions are held under the Renewable Energy Zones (REZ) state support mechanism. The scheme is better known by its Turkish acronym YEKA.

Ten solar power areas in eight provinces

The upcoming solar energy auctions, REZ SPP 2025 (YEKA GES 2025), are for 850 MW altogether. There are ten areas in eight provinces designated for bidding: Kahramanmaraş, Mardin and Van, with 40 MW each, Bolu and Elazığ (50 MW each), Erzurum 1-3 (100 MW, 150 MW and 85 MW), Eskişehir (260 MW) and Demirköprü in Manisa province, with 35 MW.

The upcoming solar power auctions will include Turkey’s first bidding for a floating photovoltaic plant

Notably, the last one is for a planned floating solar power plant on the reservoir of the Demirköprü hydropower plant. The facility on the Gediz river, east of Izmir, is owned by state-owned Electricity Generation Corp. (EÜAŞ). Turkey now hosts only two small floating photovoltaic units, and the auction will be the first of its kind.

Applications will be received on November 4, the ministry said and added it would subsequently publish a schedule for bidding.

Wind power capacity quota is 1.15 GW

Participants can apply on November 18 for the wind energy round of auctions, REZ WPP 2025 (YEKA RES 2025). It is for an overall 1.15 GW in six areas.

Investors will compete for 500 MW in Sivas province, a 140 MW project in Aydın and Denizli, 120 MW in Kütahya and three areas in Balıkesir – 160 MW, 120 MW and 110 MW.

Winners to submit guarantees of EUR 75,000 per MW for PV projects, EUR 100,000 per MW for wind

Potential bidders will pay a fee of EUR 1,550 for each auction they apply for. They must submit letters of guarantee lasting one year and worth EUR 15,000 per MW for photovoltaics and EUR 20,000 per MW for wind power. Winners will submit 10-year guarantees before signing their contracts: EUR 75,000 per MW and EUR 100,000 per MW, respectively.

The ceiling or starting price is EUR 55 per MWh and the floor prices are EUR 32.5 per MWh for solar power and EUR 35 per MWh for wind. If bids hit the floor, another auction will be held between the competitors, like in the previous round. It is for a so-called contribution share that they are ready to pay. The minimum is EUR 10,000 per MW of planned capacity and the highest bid wins.

Successful participants can sell electricity on the free market for five years in the case of solar power plants, while the period lasts six years for wind. After that, both categories enter a 20-year scheme with a guaranteed price.

Turkey tops 120 GW in total electricity capacity

At the end of July, electricity capacity in Turkey totaled 120.2 GW, the ministry revealed. Hydropower accounted for 26.9% or 32.3 GW, compared to 23.4 GW in photovoltaics (19.5%) and 13.7 GW of wind power, translating to 11.4%.

The share of biofuel and waste was 1.9%, with 2.34 GW, and geothermal power plants had 1.73 GW altogether, which is 1.4%. Gas power plants in Turkey had 24.7 GW in combined capacity (20.6%). The remainder is coal: 21.9 GW or 18.3%.