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Turkey: Turkey’s Ministry of Energy and Natural Resources announces three tenders for the deployment of 1 GW of new PV capacity

  • United Kingdom
  • Energy and infrastructure

05-11-2018

Background

In line with Turkey’s 2015-2019 Strategic Plan to reach a national renewable energy target of 30% of the total electricity generated, create security of supply  and reduce its carbon footprint, the Turkish Ministry for Energy and Natural Resources has announced three new tenders to procure 1GW of new photovoltaic (PV) capacity.

The Tenders' capacity will be divided into 500 MW for the Sanliurfa-Viransehir region, 200 MW in Hatay-Erzin and 300 MW in Niğde-Bor (which will also comprise a 30 MW/ 90 MWh (AC) Li-ion battery storage site).

Specifications

The bidding will be on a competitive basis with a tariff ceiling cap of $0.065 per KmH.

The tender notice provides for installation to start within 2 years following execution of the tender agreement, while operation should start within 5 years after the execution of the tender agreement. The license will run for 30 years.
 
The tender which is open for JVs and consortiums provides for domestic product requirements; energy management systems: at least 51%, solar modules: at least 60% which must have a minimum efficiency of 21% for cells and 18% for the modules, cable: at least 51%, cable channels: at least 51%, load bearing construction: at least 51%, invertor: at least 51%.

It is important to note that while there are no restrictions on foreign ownership and 100% foreign ownership is allowed, Turkish law provides that both the pre-licence and licence, which are required to make an investment in a solar power plant and produce electricity, can only be obtained by joint stock companies or limited liability companies incorporated in Turkey.
The latest date for submission is 31 January 2019.

We understand that concerns have been expressed around the level of the tariff ceiling.

The local content requirements are also ambitious, which will likely impact the bankability of the projects. 

If you want to discuss the above, or any other clean energy opportunities in Turkey or the wider MENA energy market, please contact the team below.

For more information contact

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