Turkey to hold more wind and solar electricity tenders
More than 4GW of solar and wind generation could be licensed in Turkey by the end of 2014, after an initial tender for photovoltaic licences is held in June, sources linked to the renewable sector told ICIS.
Some 600MW of solar generation will be tendered in the first round, to be held later this year, and companies interested to invest in the sector will be able to submit their applications between 10-14 June.
But ICIS understands that Turkish regulator EMRA is considering organising a later tender for 2GW of solar generation and possibly for another 2GW of wind generation by 2014. A source at the regulator confirmed that another tender for wind licences would follow.
In a study published by consultancy Deloitte this month, Turkey is identified as the country with the highest solar potential in Europe, surpassing Spain, Germany or the Czech Republic.
However, Turkey does not currently have any photovoltaic generation, and boasts only an estimated 2GW of wind production, although the country aims to generate 30% of its energy from renewable resources by 2023.
Turkey has comparatively low incentive levels for solar generation, offering €100/MWh, compared with a comparable feed-in tariff of €135/MWh in Germany. But Deloitte sees Turkey as one of the most attractive places for photovoltaic investments with economic growth and soaring energy demand.
In addition, the government offers bonuses to companies purchasing local equipment to bolster local production, which cover a period of five years.
At the same time, Deloitte expects the regulator to limit the level of interest in solar licences to avoid facing problems similar to those experienced after the first wind licence tender held in November 2007. There were 750 applications for 78GW of capacity, with around 350 cleared for evaluation.
Currently, there are 264 issued wind licences on EMRA's website, equating to 9.3GW. Under Turkish regulations, licences cannot be traded or transferred, but firms that do not use their licences for wind generation prefer to sell the entire company along with the licence at prices that carry a 15-30% premium (see EDEM 31 October 2012).
"The success of windpower plant licences sales is a controversial issue," the Deloitte specialist said. "[Because of the] contribution fees payable to [grid operator] TEIAS... several projects became unfeasible. That means that there are many investors with unfeasible projects that no-one wants to buy."
"For solar, the major responsibility will be on the investor: good bidding strategy will pay off. Solar power plant grid connections will be allocated by a similar tender. There is a risk that too many investors will push their bids high for the connection right." AS
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