Turkey will put 2 GW of wind power and 2 GW of solar power up for auction by the end of 2021 through the Renewable Energy Resources Area (YEKA) scheme. The average price of electricity from photovoltaics landed at EUR 21.46 per megawatt-hour before the end of this year’s first solar competition.
Turkish Minister of Energy and Natural Resources Fatih Dönmez said four auctions within the Renewable Energy Resources Area (YEKA) system would be held this year. The 4 GW quota will be split evenly between solar and wind power projects, he revealed at the summit of the Independent Industrialists and Businessmen Association (MUSIAD).
In Dönmez’s words, the capacity will be divided into 20 MW to 90 MW units. He expressed hope the wind competitions would be organized in the fourth quarter.
The auction process for 1 GW in mid-sized solar power plants suffered delays due to pandemic-related restrictions in Turkey
The solar YEKA auctions for an overall 1 GW started in late April, but there were delays due to the pandemic. The minister said investors won 50 units 650 MW at an average price of 0.2242 liras per kilowatt-hour, which translates to EUR 21.46 per megawatt-hour, before the allocation of the remaining 350 MW.
With the decrease in renewable energy costs, investments are now four or five times cheaper than five to 10 years ago, Dönmez stressed. He said Turkey would continue to add coal, nuclear and gas-fueled power plants in order to secure baseload energy.
The minister pointed out that the country’s total installed power capacity reached 97.38 GW by the end of April and that 52.5% were renewables.
Capital costs in the renewable energy sector are up to five times lower than five or ten years ago
Turkey is introducing an electricity futures market on June 1 so that participants can bet on expected prices, Dönmez asserted. The government can expand the battery market in partnership with the automotive industry, so both carmakers and the energy sector can benefit, he said.