Ministry launches 2-GW wind YEKA auction distributed to 42 regions

(Enerji IQ – May 2021) The Ministry of Energy launched the tender process for 2 GW of wind-connection capacity under the Renewable Energy Resource Zones (YEKA) scheme, distributed to 42 regions. The allocated capacities vary from 20 MW to 90 MW. Each underbidding will start with a ceiling price of 45 Krs/kWh, which corresponds to 5.32 US$c/kWh, with an 8.45 TL/US$ exchange rate.

The auctions are held with TL-based prices, but the prices will escalate quarterly with a formula indexed to CPI, PPI, and US$-EUR FX rates. An equivalent of 6.00-US$c/kWh limit caps the escalated price according to the auction procedures.

The power purchase agreement (PPA) term for the wind YEKA-3 tender is determined as the period for the first 35 GWh of production of each MW of the connection capacity. The previous YEKA wind tenders were completed with a 15-year PPA.

The pre-license term, during which the winning company is supposed to complete pre-construction site work, permits, and other procedures, is defined as 24 months. Each company will be obliged to complete the construction of the wind plant within 36 months following the issue date of the generation license.

The successful bidder for each region will have to submit its YEKA field data within 90 days following the signing date of the agreement. The Ministry of Energy will evaluate the field of YEKA candidates within 150 days, according to the tender specifications.

The minimum installed capacity of the wind turbines will be 3 MW, and it will be compulsory to use wind turbines that are manufactured in Turkey.

The regions exclude the western city Izmir and northwestern city Balikesir, and the majority of the capacity is distributed to central and eastern Anatolian cities.

The first YEKA wind tender was held in Ankara on August 3, 2017, for a minimum of 700 MW to a maximum of 1,000 MW of capacity, including the establishment of a turbine factory. After 30 rounds, Siemens Gamesa-Turkerler-Kalyon JV won the tender with the lowest bid of 3.48 US$c/kWh. The YEKA zones included 405 MW at Kirklareli, 295 MW at Edirne, 250 MW at Sivas, and 50 MW at Eskisehir.

The second YEKA wind tender was held in May 2019 for 1 GW of capacity, with 250 MW allocated to Balikesir, Mugla, Aydin, and Canakkale each. The ceiling price was set as 5.5 US$c/kWh, and the PPA term was determined as 15 years.

Enerjisa secured 250 MW in Aydin with 4.56 US$c/kWh and in Canakkale with 3.67 US$c/kWh, while Enercon secured Balikesir with 3.53 US$c/kWh and Mugla with 4.00 US$c/kWh. The average price, 3.94 US$c/kWh, came in above expectations.

Turkey plans offshore wind after 2023

Turkey plans first offshore wind plant after 2023, said Murat Zekeriya Aydin, the Managing Director of the General Directorate of Energy Affairs. “Offshore wind is one of the important items on our agenda, but we would like to prioritize onshore wind potential and plan to carry out preparations for offshore up to 2023. We are collaborating with Denmark for the preparations,” said Aydin during TUREB’s webinar on May 26.

During the momentum gained in wind investments in 2018, the Ministry of Energy announced that Turkey’s first offshore wind tender would be held on October 23, 2018. However, this short-order tender was canceled due to a lack of interest from local and foreign investors.
Turkey’s offshore wind potential was stated as 5 GW in Ankara-based consultancy firm Re-Consult’s detailed pre-feasibility study, published in Enerji IQ in 2019.