Turkey Tenders 1.5 GW Solar Project for 5th Round of RE Auction

Turkey has invited bids for a 1.5 GW solar tender for the fifth auction round of its Yenilenebilir Enerji Kaynak Alanları (YEKA) renewable energy program, the submission of which must be done on January 12, 2022.

The country’s Ministry of Energy aims to select 76 large scale PV projects with capacities ranging from 10 to 30 MW across three 23 cities and has set a ceiling price of TRY0.40/kWh.

In order to participate in the bidding process, bidders must submit TRY 5 million for 10 MW capacity, TRY 10 million for 20 MW capacity, and TRY 15 million for 30 MW capacity as a letter of guarantee.

The fourth tender under the YEKA program was floated in mid-July, the results of which are expected to be announced in a few weeks’ time. The country has a target of 15 GW total solar capacity by 2027, which it may meet sooner than the deadline. In August 2020, Turkey inaugurated its $400 million vertically integrated solar module factory with annual production capacity of 500 MW.

Efforts to boost production and accelerate energy efficiency will help Turkey achieve its energy security goals, but it should consider its longer-term emissions trajectory too, a recent International Energy Agency (IEA) report says.

“Turkey has also sought to strengthen the security of its energy supply by increasing production of renewable energy and reducing energy consumption through increased energy efficiency. Auctions, in particular, have proven successful in driving down costs and increasing investments in renewables. The planned commissioning of Turkey’s first nuclear power facility in 2023 will further diversify the country’s low-carbon fuel mix,” said the report.

For Turkey to establish a modern and competitive economy, the report highlights that the government should pay close attention to the sustainability of its energy sector and its longer-term carbon footprint.

In particular, Turkey should reconsider the role of lignite-based power generation in a low-carbon future. It will be equally important to direct industrial policy to take into account the growing momentum behind global clean energy transitions. This can take the form of further promoting innovation in areas such as electric vehicles, energy storage and digital technologies, explained IEA.