Türkiye said on Monday that it would hold five wind power competitions aimed at allocating a total capacity of 1,200 megawatts (MW) under specially designated renewable energy resource zone tenders, known as YEKA.
The announcement in the Official Gazette came a week after Energy and Natural Resources Minister Alparslan Bayraktar said Türkiye will need $108 billion of public and private investment as it aims to quadruple its wind and solar energy power capacity to 120,000 MW by 2035.
The five competitions envisage allocation of 410 MW for the Edirne Wind Power Plant, 340 MW for the Balkaya Wind Power Plant, 200 MW for the Sergen Wind Power Plant, 160 MW for the Yellice Wind Power Plant, and 90 MW for the Gürün Wind Power Plant.
Each competition will set a maximum bidding price of $5.50 per kilowatt-hour (kWh) and a minimum price of $3.50 per kWh, according to the announcement in the Official Gazette.
Should bidders reach the minimum price, the starting contribution margin will be set at $10,000 per megawatt.
Successful bidders will be permitted to sell the electricity produced in the free market for 72 months following the signing of contracts. The purchasing period for energy will be established for 20 years, commencing after the free market selling period ends.
Payments made to the Turkish Electricity Transmission Corporation (TEIAŞ) for transmission tariffs during the electricity purchasing period will be compensated under the Renewable Energy Support Mechanism (YEKDEM) for the winning bidders.
To participate in each competition, applicants must submit a non-refundable letter of guarantee amounting to $20,000, which is valid for one year and can be partially or fully converted into cash. In the event of winning the competition, a further letter of guarantee of $50,000 must be provided one day before signing the contract. The initial letter of guarantee will then be refunded.
Eligible participants include legal entities established as joint-stock companies or limited liability companies under the Turkish Commercial Code, as well as capital companies of foreign nationality.
Applications for the competitions will be submitted to the Energy and Natural Resources Ministry on Jan. 21, 2025. Any applications submitted by means other than in-person delivery will not be considered.
Details regarding the location, dates, and times will be announced on the ministry's official website.
Although Türkiye's wind and solar energy capacity has grown sharply in recent years, a lengthy permission process and lack of financing have been the key issues of concern for energy sector investors.
Bayraktar last week said Türkiye will hold a tender to allocate 2,000 MW of wind and solar plants early next year, with a new scheme providing a price floor and long term electricity purchase guarantees, which will make it easier to finance investments.
Türkiye, which has modest oil and natural gas resources, has been incentivizing private sector investments in renewable power plants since 2005 to reduce its high import bill and insulate itself from geopolitical risks.
Solar, wind, geothermal, and biomass power plants that started operation after 2005 reached approximately 30,000 MW installed capacity, or 17.7% of total national installed capacity in the past 18 years, according to data.
While Türkiye electricity consumption has tripled in 20 years, it is expected to increase even faster in the coming years due to the long-term energy transformation, which involves replacing fossil fuel energy with electricity.