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Turkey awards 1.15 GW in wind power auctions – all at just EUR 35 per MWh

The six winners from the latest round of wind power auctions under the YEKA state support mechanism in Turkey will have at least EUR 35 per MWh guaranteed from the sale of electricity in the first six years. It was the floor price in the bidding. After it was reached for each zone, the remaining participants had to compete by offering to pay for the right to sign the contract.

Delays and the lack of money for the construction of high-voltage, transmission lines is one of the main hurdles slowing the uptake of wind and solar power. Turkey’s approach has turned out to be successful, as it allows investors to compete to pay one-off fees for available predetermined projects in auctions. At the same time, the beneficiaries get guaranteed prices for the future sales of their electricity.

The country has earned EUR 530 million overall this year from two rounds for solar and two for wind power, Minister of Energy and Natural Resources Alparslan Bayraktar said. It includes EUR 208 million just from the latest bidding under the Renewable Energy Zones (REZ) state support mechanism, he claimed. It is better known by its Turkish acronym YEKA.

The winners are getting grid connections for 49 years

The ministry awarded zones for six projects for 1.15 GW in total connection capacity. The winners are getting grid connections for 49 years, a minimum price during the six-year open market sale period and power purchase agreements (PPAs) at the same level for another 20 years.

Entire capacity allocated at floor price

In the bidding in the REZ WPP 2025 (YEKA RES 2025) round, the ceiling price was EUR 55 per MWh. With 75 applications altogether, 30 companies participated – between six and 20 per zone.

In all cases, the bottom price of EUR 35 per MWh was reached, so the remaining bidders were switched to the second phase. The YEKA auctions are broadcast live.

The winners need to pay between EUR 56,000 per MW and a stunning EUR 312,000 per MW of capacity, or from EUR 23.8 million to EUR 34.3 million for each zone. Combined, the contribution fees amount to EUR 173 million, or some EUR 470 million for all auctions held this year.

Bayraktar estimated total investments in projects involved in the last wind power round at USD 1.1 billion.

Eksim, Polat among winners

The Kütahya zone of 120 MW went to İçdaş Elektrik Enerjisi, for EUR 222,000 per MW. Stone Enerji snatched the Aydın-Denizli project of 140 MW with a winning bid of EUR 170,000 per MW. The firm was a winner at the recent solar power auctions as well.

For the Sivas area, the largest of all (500 MW), Kanat Rüzgar Enerji will be required to pay EUR 56,000 per MW, which is the lowest level.

Three zones are in Balıkesir province. Eksim Energy (Enerji) committed the most of all winners, EUR 312,000 per MW, for the Balıkesir-3 project. It is for 110 MW. Balıkesir-2, of 120 MW, was won by Balıkesir Elektrik. It offered a contribution fee of EUR 218,000 per MW.

The Balıkesir-1 area is for 160 MW in connection capacity. Polat Enerji’s subsidiary Soma Enerji was the best bidder, with EUR 212,000 per MW.

Turkey hosts wind power plants of more than 14 GW combined, of more than 121 GW in total electricity capacity.

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INA, E.ON sign power purchase agreement in Croatia

Croatian oil and gas company INA and German energy giant E.ON’s subsidiary in the Southeastern European country have signed a power purchase agreement for electricity from renewable sources.

The power purchase agreement (PPA) will enable INA, majority-owned by Hungarian MOL, to use energy from its own power plants, even from remote locations where the produced electricity or surplus is fed into the grid, the companies said.

The electricity purchase covers three cogeneration plants and 18 photovoltaic plants with a total annual production of 20 GWh. INA’s largest solar power units, Virje and Sisak, have a combined capacity of about 13 MW.

The companies said it is a 2-in-1 solution – supply and purchase of electricity, creating a long-term sustainable energy system and allowing energy produced at one location to be used at another.

E.ON Croatia said it is connecting production and consumption into one efficient, closed energy system

With the partnership, the two firms are connecting production and consumption into one efficient, closed energy system, said E.ON Croatia.

It marks a new phase of cooperation, focused on developing a smarter, more flexible energy system, sustainable in the long term, according to the German energy giant’s subsidiary.

Ivica Kuliš, manager of the energy retail division of E.ON Croatia, said the utility is proud to become INA’s key partner in its electrification efforts, not only through supply but also by purchasing electricity. It directly enables flexible, locally produced energy to be available where it is needed most, he added.

Sokolović: INA is laying the foundation for long-term energy independence and decarbonization

By investing in its own production and using the PPA model, INA is laying the foundation for long-term energy independence and the decarbonization of its operations, said Dalibor Sokolović, head of the company’s department for new and sustainable businesses.

Such solutions enable more flexible and responsible resource management, Sokolović added.

Of note, according to an earlier analysis by Pexapark, the European PPA market entered an adjustment chapter last year, characterized by record deal-making for smaller volumes. Namely, the firm’s tracker registered a decrease of around 11% in total disclosed contracted volumes vis-à-vis 2023, to 15.2 GW.

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Rörig (E.ON): Croatia charges up to six times higher e-waste fees on solar panels than other EU states

Croatia charges a waste fee on solar panels of EUR 300 per ton, up to six times more than other European Union countries. The levy slows down the expansion of solar energy, Andreas Rörig, president of the Management Board of E.ON Croatia, told Balkan Green Energy News.

In addition to the one-off e-waste management fee, hindering investments, another issue is that Croatia doesn’t have a system for collecting and recycling solar panels.

Andreas Rörig’s post on LinkedIn received a lot of public attention. He wrote that in Croatia high fees and regulatory barriers, including the ones related to waste, are holding back solar’s potential. With a waste fee of EUR 0.3 per kilogram (EUR 300 per ton), the profitability of solar investments is at risk, he added.

The fee in other EU countries ranges from EUR 50 to EUR 150

Rörig explained that a comparison with other EU member states demonstrates that fees in Croatia are significantly higher than in neighboring countries. For example, they range from EUR 50 to EUR 150 in the Netherlands, Belgium, Slovenia, and Hungary.

The fee is paid on total weight, which is more than 20 kilograms per panel, according to E.ON. Even more concerning is the disproportionate taxation: 80% to 90% of a solar panel’s mass consists of easily recyclable materials that aren’t classified as e-waste, yet the fee is charged on the total weight.

“This approach discourages investment, slows Croatia’s progress toward energy transition, and contradicts the country’s goals of reducing emissions and increasing energy efficiency. A practical example of why solar energy accounts for less than 2% of Croatia’s energy mix – far below its true potential,” Rörig stated.

There are signs that things are about to change

Therefore he recommended reducing the electronic waste management fee for solar panels and suspending the obligation until a functional disposal system is in place. He confirmed there is currently no functional system for the collection, processing, and recycling of e-waste from solar panels in Croatia.

“However, there are positive indications that the fee will be reduced and that the system will be established. We believe that the Environmental Protection and Energy Efficiency Fund or FZOEU has recognized the needs of the industry. E.ON supports such measures because we believe that they will fix the problem and enable easier waste management,” Rörig stressed.