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Turkey tenders 1GW in new auction system

TURKEY: A 1GW wind tender should be assigned through a new competitive auction to a single consortium, with the winning bidder gaining the right to a 15-year fixed-price power purchase agreement, the energy minister has said.

Turkey's cumulative wind capacity stood at 6.1GW at end 2016
Turkey's cumulative wind capacity stood at 6.1GW at end 2016

In a notice in Turkey's Official Gazette, the ministry set a 27 July deadline for interested parties to present applications to participate in the first wind tender.

It involves a reverse auction and gives successful bidders the possibility of building projects in seven separate areas.

A ceiling price of $0.070/kWh has been set, just below the current ten-year feed-in-tariff base price of $0.073/kWh.

Local content requirements — including the establishment of a local wind turbine factory — are key for participants in the new "renewable energy designated area" auction system, known by its Turkish acronym Yeka. Most of the workforce employed must also be local.

The tender follows the allocation in March of 1GW in solar capacity to a consortium made up of Turkish energy firm Kalyon Enerji and South Korea's Hanwha Q Cells through the first Yeka renewable energy auction.

Turkey's cumulative wind capacity stood at 6.1GW at end 2016, far below the 20GW target for 2023.

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