Turkey Initiates 2 GW Renewable Energy Tenders

• Turkey is charging forward in renewable energy, launching an 800 MW solar tender as part of its ambitious YEKA programme to secure a sustainable future.

Turkey is advancing its renewable energy initiatives by launching a tender for 800 MW of solar projects under the Renewable Energy Resources Zone (YEKA) programme. This follows a recent auction for 1,200 MW of onshore wind projects. The solar tender includes six photovoltaic projects across multiple regions, with capacities from 40 MW to 385 MW. A preliminary ceiling price of USD 0.055 per kWh has been set, with bids due by January 27, 2025.

The winning bidders will benefit from a minimum power selling price for five years and a guaranteed rate for the subsequent 20 years, contingent upon using local manufacturing for PV components. Turkey’s broader strategy includes hosting YEKA tenders for a total of 2 GW annually until 2035, aligning with its goal of achieving 120 GW of installed wind and solar capacity by that year.

How will Turkey's solar tender impact its renewable energy goals through 2035?

Turkey's solar tender represents a significant step in the country’s renewable energy journey, particularly in its ambitions through 2035. Here’s how the tender is expected to impact Turkey's renewable energy goals:

• Capacity Addition: The introduction of 800 MW of solar capacity through this tender will significantly contribute to Turkey's cumulative installed solar power, enhancing the overall renewable energy mix.
• Investment Attraction: By establishing a clear framework and ceiling prices for solar projects, Turkey aims to attract both domestic and international investors, fostering growth in its renewable energy sector.
• Local Manufacturing Incentives: The requirement for using locally manufactured photovoltaic (PV) components not only promotes domestic industry but also supports job creation and technological advancements within the country.
• Long-term Contracts: The guaranteed pricing structures enhance financial stability for project developers, enabling them to secure investments and contribute to long-term planning within Turkey's energy landscape.
• Integration of Renewables: Increased solar capacity will aid Turkey in diversifying its energy sources, reducing dependence on fossil fuels, and improving energy security, particularly in light of global energy market fluctuations.
• Environmental Benefits: Scaling up solar energy production will contribute to reduced greenhouse gas emissions, aligning Turkey with international climate commitments and enhancing its efforts to combat climate change.
• Regional Development: The tender specifies multiple regions for solar projects, which could lead to infrastructure improvements and socio-economic development in those areas, promoting regional equity.
• Technological Advancement: The focus on solar energy fosters innovation and research within Turkey’s energy sector, potentially leading to enhanced efficiencies and lower costs for solar technologies.
• Alignment with National Goals: This solar tender aligns with Turkey's larger goal to reach 120 GW of installed wind and solar capacity by 2035, reinforcing the government's commitment to expanding renewable energy sources.
• Market Competitiveness: The competitive bidding process introduced by the tender is expected to lead to cost reductions in solar energy production, which could improve the viability of solar energy as a primary energy source in Turkey.
• Regulatory Framework: By executing structured tenders like this, Turkey is creating a more predictable regulatory environment, which is key for long-term investments in the renewable energy sector.
• Energy Mix Diversification: As Turkey progresses with both solar and wind tenders (such as the recent 1,200 MW auction for wind), the diversification of its energy portfolio will stabilize its energy supply and create a more resilient energy infrastructure.
• Commitment to Sustainability: This move highlights Turkey’s commitment to sustainable development goals by promoting clean energy, which further enhances its international standing in the climate cooperation dialogues.

By strategically implementing this solar tender, Turkey is positioning itself to meet and possibly exceed its renewable energy targets while bolstering economic growth and environmental sustainability through 2035.