Turkey

Turkey

Turkey launches 1GW onshore tender

TURKEY: The energy minister has called a tender for 1GW in new onshore wind capacity next March, but no announcement has been made following a 1.2GW offshore auction scheduled for last month.

Turkish energy minister Fatih Donmez launched the country's 1GW onshore wind auction
Turkish energy minister Fatih Donmez launched the country's 1GW onshore wind auction

The onshore tender will be broken down into four lots of 250MW each, with capacity set to be awarded in the provinces of Balikesir, Canakkale, Aydin and Mugla on Turkey’s western coast, according to a notice in the country's Official Gazette on 7 November.

The tender ceiling price has been set at $0.055/kWh and applications will be accepted until 7 March 2019.

Investors hope that financing issues currently plaguing the market will be resolved by then.

Power purchase agreements with the successful projects will cover a 15-year period from the date of the signing of the right-of-use contracts.

The tender is the second for onshore wind through the auction system known as Yeka — the Turkish acronym for "renewable-energy designated area".

In August 2017, the right to build up to 1GW in onshore wind capacity was awarded to a consortium composed of Siemens Gamesa Renewable Energy (SGRE) and local firms Kalyon Enerji and Turkerler Holding at a price of $0.0348/kWh.

In line with requirements for that Yeka tender, SGRE committed to set up a nacelle factory.

While the new tender also has local-content requirements, it does not require the establishment of a factory.

Offshore

Meanwhile, an 23 October deadline for bidders to submit offers for 1.2GW in offshore capacity passed without any official announcement of results from the ministry.

Market players say that tender was quietly cancelled amid a lack of investor interest, although there is talk that a new offshore auction may be announced in the near term.

Turkey currently has no offshore wind capacity installed but about 7.1GW onshore, according to Windpower Intelligence, the research and data division of Windpower Monthly.

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