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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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Wind power investments in Turkey surge as major plants inaugurated in May

Investments in wind power in Turkey are on an upward trajectory – this year they are expected to surpass USD 1.5 billion, translating to 1.5 GW of new capacity, President of the Turkish Wind Energy Association (TÜREB) Ibrahim Erden estimated. Among other factors, the country has an extensive manufacturing base for the equipment. Several major wind farms were inaugurated last month.

The first wind turbine in Turkey was installed in 1998, and now total capacity is nearing 14 GW. The growth rate is picking up amid administrative reforms and state support through renewable energy auctions, requiring a high rate of domestically sourced equipment.

President of the Turkish Wind Energy Association (TÜREB) Ibrahim Erden said investments last year amounted to USD 1.3 billion, with 1.3 GW installed. The figure will top USD 1.5 billion in 2025, resulting in over 1.5 GW of new capacity, in his view.

Erden attributed the expansion to new licenses for projects with storage and projects from the YEKA mechanism of renewable energy auctions coming online. Investors from the Middle East and China participated in the bidding, he pointed out.

TÜREB’s chief said he expects 2 GW next year and gradual growth to 3.5 GW by 2028 or 2029.

There are 150 manufacturers in Turkish wind industry

There are 150 manufacturers of wind turbine components and accompanying gear in Turkey, covering 65% of the technology. The country reportedly hosts some 380 wind power plants, with more than ten turbines each on average.

The Grand National Assembly is expected to vote soon on legislation aimed at cutting the permitting process by half, to 24 months or less.

Hundreds of megawatts spring up in western provinces

Several big wind farms were inaugurated last month. Atares-2, in the Karacabey district of Bursa in Turkey’s northwest, has 113 MW. It consists of 23 turbines and the investment is worth almost EUR 150 million. CABA, the investor, expects to generate 400 GWh per year.

Eksim expanded its wind power plant in the Geyve district, southeast of Istanbul, in Sakarya province. The original facility had 11 turbines of 52.8 MW in total. The company’s project is for another 14 turbines of 7 MW apiece.

According to Eksim’s website, the combined installed capacity reached 129.8 MW out of 150.8 MW planned overall.

Enerjisa’s Uygar project would at the moment be the second-biggest wind farm in Turkey

Yıldızlar Group and ERN Holding built a 148.8 MW wind farm in Denizgöründü in the Çanakkale district and province. The location is near the Dardanelles Strait, on the country’s Asian side. The companies earlier said the Gülpınar facility would reach 194 MW.

Enerjisa Üretim, which won most of the capacity at the last YEKA auction, launched production at the first part of its 30th power plant. The Uygar wind farm in Balıkesir is set to grow to 250 MW. Currently, it would make it the second-biggest in the country, after Soma.

The Uygar site also spans parts of the neighboring provinces of Manisa, where Soma is located, and Izmir. Its 60 turbines are seen generating 1 TWh per year, according to the project. Enerjisa Üretim is a joint venture between German E.ON and Turkey-based Sabanci.

City of Kayseri builds first municipal wind park in Turkey

In addition, the Kayseri Metropolitan Municipality in central Turkey inaugurated its three wind turbines in Incesu district. They were built to cover the local trams and electric buses, the local authority said.

The municipal transportation firm is operating the 21 MW facility, which will produce 60 GWh per year. It is the first municipal wind farm among 30 largest cities. Kayseri also has its own solar power plants.