Competition announcement for five new wind power based Renewable Energy Resource Area (“YEKA”) projects, with a total capacity of 1200 MW (“Projects”) has been published in the Official Gazette on October 28, 2024.

The Projects will comprise 5 new wind power plants with 410 MW, 340 MW, 200 MW, 160 MW and 90 MW connection capacities at the specified regions in Edirne, Kırklareli and Sivas as follows:

Only entities established as a joint stock company or a limited liability company pursuant to the Turkish Code of Commerce numbered 6102 and foreign companies with capital company status are entitled to participate in the competition.

The initial ceiling price is set at USD 5.50 per kWh, with a base price of USD 3.50 per kWh applicable to each Project. Should the base price be reached, the starting contribution margin increase will be USD 10,000 per MW.

The free market selling period will last for 72 months following the signing of the YEKA Agreement, during which electricity will be sold in the free market. The electricity purchase term will commence immediately after the conclusion of such free-market period and will extend for 20 years. Payments made to the Turkish Electricity Transmission Company (TEİAŞ) for the transmission tariff during the electricity purchase period will be disbursed to the awarded bidder under the Renewable Energy Support Mechanism (YEKDEM).

Within the scope of the specifications published on the website of the Ministry of Energy and Natural Resources (“Ministry”), some requirements regarding the localization have also been set. Accordingly, wind turbines shall be manufactured and/or supplied in factories established in Türkiye (including free zones) at the specified minimum localization rates.

Next Steps

The potential bidders shall submit their applications by hand to the General Directorate of Energy Affairs of Ministry (“General Directorate”) on January 21, 2025, between 10 a.m. – 12. p.m. A bid bond in the amount of USD 20,000 for megawatt units of electrical installed power, in the form of a definite, one-year term, fully and partially cash-convertible, out-of-limit bond, is required to be submitted for application.

If the competition is awarded, a performance bond in the amount of USD 50,000 for megawatt units of electrical installed power in the form of definite, 10-year term, fully and partially cash-convertible bond, must be submitted to the General Directorate no later than one day before the date of signing the contract, and the bid bond submitted during the application stage will be returned.

Competition specifications and the draft YEKA agreement are published on the Ministry’s official website. The place, date and time of the competition will also be published at a later date on the same website. However, according to the “2035 Renewable Energy Road Map” that was announced on the Ministry’s website, the competition is expected to take place on January 28, 2025.

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