Turkey has invited bids for a 1.5 GW solar tender for the fifth auction round of its Yenilenebilir Enerji Kaynak Alanları (YEKA) renewable energy programme. The ceiling tariff has been set at $0.045 per kWh by the Ministry of Energy and Natural Resources. The Turkish government aims to select 76 large-scale solar projects with capacities ranging from 10 MW to 30 MW across 23 regions. The bid submission deadline is January 12, 2022.

As per the tender guidelines, to be eligible for the bidding process, bidders must submit $564,674 for 10 MW capacity, $1.13 million for 20 MW capacity, and $1.69 million for 30 MW capacity as a letter of guarantee. Earlier, the government allocated 1 GW of solar capacity ranging from 10 MW to 20 MW in May 2021. Going forward, by 2027, the government has targeted a total solar capacity of 15 GW. The country is on track to reach the goal a year ahead of schedule. In 2018, it reached the 5 GW capacity goal set for 2023. Renewable energy projects will account for 98 per cent of installed power capacity in 2020.

In February 2021, Turkey’s electricity generation from solar projects increased by 50 per cent compared to the same period in the previous year. Since its introduction in 2002, the proportion of solar power in the country’s power mix has increased by 3.7 per cent. Currently, solar power accounts for 7.1 per cent of the installed capacity, with the installed solar capacity reaching 6.8 GW.  In August 2020, Turkey also inaugurated its integrated solar module manufacturing facility. The 500 MW solar ingot-wafer-module-cell production factory owned by Kalyon Holding will be operated through an investment of $400 million.

REGlobal’s Views: Turkey is planning massive solar installations to further its clean energy agenda. The country has witnessed impressive decline in costs of new solar power projects making it an affordable option for the country, when compared to costlier imported coal.