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Turkey sets fixed tariff for licensed PV projects

Large scale PV projects selected in public tenders held by the Turkish authorities will be awarded a 10-year tariff of TRL0.32/kWh ($0.044). The tariff will be indexed to inflation and dollar-euro exchange rate.

Turkey’s government has published the new fixed tariffs of the renewables incentive scheme for large scale renewables, the Yenilenebilir Enerji Kaynakları Destekleme Mekanizması, or YEKDEM.

The scheme grants a fixed price for a period of ten years and applies to clean energy projects selected in tenders, such as the 600 MW procurement exercise held in 2013 and the ongoing 1 GW tender recently launched by the Turkish Ministry of Energy.

Winning wind and solar projects will be eligible for a fixed tariff of TRL0.32/kWh ($0.044) while hydropower and geothermal projects will be granted tariffs of TRL0.40/kWh and TRL0.54/kWh, respectively.

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Prices will be updated quarterly according to the consumer price index (CPI) and the producer price index (PPI), as well as any rise in the dollar-euro exchange rate. If the dollar and euro rate decreases, the updated price will not exceed TRL0.51/kWh for PV and wind, TRL0.o64 for hydropower, and TRL0.086 for geothermal energy.

The prices will be applied for 10 years for the licensed power plants that will come into operation from July 1, 2021 to December 31, 2025.

“The updated prices will hardly be motivating new investments but they give at least a clear view for the next years,” the CEO of German company KRC Consulting, Hakki Karacaoglan, told pv magazine. “A value change adaptation against currency value gain, or also value lost, is an added value, according to the industry.”

Although the fixed tariffs for the YEKDEM program were in place by the end of 2010, more significant development started with the adoption of Electricity Market Law No. 6446, in March 2013. As of December 2020, the total installed capacity of licensed solar PV in Turkey was 410 MW, according to official reports.

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Source: pv magazine