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Turkey issues 710MW pre-licences

TURKEY: Power transmission system operator Teias has issued 710MW in preliminary licences for wind farms in 11 regions, kicking off of a 3GW licensing round initially expected for 2016.

A remaining 2.3GW of the 3GW round should be assigned pre-licenses by the end of 2017
A remaining 2.3GW of the 3GW round should be assigned pre-licenses by the end of 2017

So-called pre-licences were awarded to 18 wind projects meeting the necessary requirements and participating in grid capacity auctions. The projects must now complete permitting.

Successful bids ranged from a $5.12/kWh to the -$1.61/kWh offered by the RES Anatolia arm of the RES Group for one 70MW project. Eleven of the 18 successful bids were below $0/kWh.

Those bidding with negative prices will not necessarily lose money, but they cannot participate in Turkey's feed-in tariff system.

They will sell power on the free market and pay Teias the amount of their negative bid — a sort of penalty — for the first ten years of operation, explained Christian Johannes, general manager of wind consultancy Re-consult.

As is the case for other producers, earnings may be supplemented for five years with local content price premiums.

The remaining 2.3GW of the 3GW round should be assigned pre-licences this year, while a 2GW round is expected in 2018.

The assignment of the first 710MW in pre-licences comes ahead of a deadline this month for bids in a "renewable energy designated area" auction system known by its Turkish acronym Yeka.

Yeka will see some 1GW in projects assigned to a single consortium meeting strict local content requirements.

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