The Presidential Decree No. 7189 (“Presidential Decree”) introducing the new pricing on the renewable energy support mechanism (YEKDEM) and the local content support was published in the Official Gazette on May 1, 2023 and entered into force on the same date. The Presidential Decree updates the YEKDEM feed-in-tariffs and local content support prices and introduces a new price adjustment mechanism.
According to the Presidential Decree:
- The new YEKDEM feed-in tariffs and local content support prices (stated in the below chart) will apply to the renewable energy-based power plants commissioned between July 1, 2021 and December 31, 2030.
- No retroactive payment will be made for any price differences for the renewable energy-based power plants that were commissioned between July 1, 2021 and May 1, 2023 and which have benefited from YEKDEM.
- The new feed-in tariffs and local content support prices (in TL Kuruş/kWh) will be subject to a basket-based adjustment on a monthly basis. The basket will consist of:
- PPI (Producers Price Index) (25% weight),
- CPI (Consumer Price Index) (15% weight),
- US$ (30% weight), and
- Euro (30% weight).
- Ceiling and base prices for YEKDEM feed-in-tariffs (in US$ cent/kWh) (as stated in the below chart) are determined to be considered in monthly adjustment of the feed-in-tariffs. The adjusted feed-in-tariff (in TL Kuruş/kWh) for the relevant month will be determined as follows:
If the calculated adjusted feed-in-tariff (in US$ cent/kWh) is:
- between the ceiling price and the base price, the equivalent of the calculated adjusted feed-in-tariff in TL Kuruş/kWh* will be applied.
- above the ceiling price, the equivalent of the ceiling price in TL Kuruş/kWh* will be applied.
- below the base price, the equivalent of the base price in TL Kuruş/kWh* will be applied.
(*calculated according to the average value of daily US$ Dollar purchase rates published by the Central Bank of the Republic of Turkey in the preceding month.)
- The new feed-in tariffs will be applicable for 10 or 15 years, and the local content support will be applicable for 5 or 10 years depending on the type of power plant as stated in the chart below.
- The feed-in-tariffs and local content supports for the electricity storage facilities integrated with wind and solar power plants and the wave and current energy-based power plants have been determined for the first time.
Details of the new YEKDEM feed-in tariffs and the local content supports for each type of power plant are provided in the following chart:
|Type of Power Plant||Feed-in Tariff (TL Kuruş/kWh)||Feed-in Support Period (Year)||Base Price for Feed-in Tariff After Adjustment (US$ cent/kWh)||Ceiling Price for Feed-in Tariff After Adjustment (US$ cent/kWh)||Local Content Support (TL Kuruş/ kWh)||Local Content Support Period (Year)|
|Hydropower||with reservoir (only for the facilities with reservoir space between 1 km² and 15 km²)||144,00||10||6,75||8,25||28,80||5|
|with pumping storage||202,00||15||9,45||11,55||38,45||10|
|Thermal Disposal (only for the facilities that obtained its pre-license until 1 May 2023)||134,90||10||5,75||8,00||21,58||5|
|Electricity storage facility integrated with wind and solar plants (only applicable for the electricity transmitted to the system after being stored)||125,00||10||5,85||7,15||38,45||10|
|Wave and current energy based||202,00||10||6,30||7,70||38,45||10|
This information is provided for your convenience and does not constitute legal advice. It is prepared for the general information of our clients and other interested persons. This should not be acted upon in any specific situation without appropriate legal advice. This information is protected by copyright and may not be reproduced or translated without the prior written permission of Ergün Avukatlık Bürosu.