CLIENT ALERT

June 2018

   

 

For further information please contact:

Av. Dr. Çağdaş Evrim Ergün
Partner, Ankara
c.ergun@cergun.av.tr

Aslı İbiş
Legal Intern, Ankara
a.ibis@cergun.av.tr

Ergün Avukatlık Bürosu İstanbul | Levent Loft II, D: 13-16, Levent
T +90 (212) 280 90 91

Ankara | Mahall Ankara, E Blok, D: 63, Çankaya
T +90 (312) 220 30 60

E info@cergun.av.tr

W cergun.av.tr

Offshore Wind YEKA Project

Tender announcement for the 1.200 MW Offshore Wind Power Renewable Energy Resource Area (“YEKA”) Project (“Project”) has been published in the Official Gazette on June 21, 2018.

General Information

The Project will be the first offshore wind power project in Turkey, and the largest in the world with 1.200 MW installed capacity. Candidate regions for the instalment of the Project have been identified as Saros and Gelibolu in Çanakkale on the Aegean coast and Kıyıköy which is located in the north-western part of the Marmara Region on the Black Sea coast. It will be the 3rd YEKA project in Turkey after the previous solar and onshore wind power YEKA projects.

Project Model

The Project will comprise the allocation of renewable energy resource areas and utilization of the connection capacities in order to install offshore wind power plants. The Project will be developed through the principles set out in the YEKA Regulation.

According to the YEKA Regulation, projects can be developed through (i) Allocation in exchange for Domestic Production (“YÜKT”) and (ii) allocation in exchange for Use of Domestic Products (“YMKT”) models. In the YÜKT model, the YEKA usage right is assigned in exchange for a commitment to domestically manufacture the equipment used in the renewable energy generation facilities. Whereas, the YMKT model, the YEKA usage right is assigned in exchange for a commitment to use domestic products within the renewable energy generation facilities. The Offshore Wind Project will be developed through the YMKT Model (i.e. without the requirement for establishing a factory in Turkey) and the awarded bidder will obtain the YEKA usage right by committing to use domestically manufactured equipment and accessories.

Procedure                               

The tender will be conducted through the Dutch auction procedure upon the initial ceiling price of 8 US$ Cent/kWh. The bidder who submits the lowest price will be awarded with the contest and such price will constitute the electricity purchase price.  The electricity purchase term will commence from the date of the partial acceptance of the first power generation facility and continue throughout the period of transmission of the first 50 TwH power generated. In other words, differently from the YEKA projects, the electricity purchase guarantee will be applicable for a certain amount power as opposed to a certain period of time.

Potential bidders may review and purchase the specification at the General Directorate of Renewable Energy in Ankara. The purchase price of such document is TL 20,000.

Only legal persons, joint ventures or consortiums are entitled to participate in the tender.

Next Steps

The deadline for submission of the applications is 12:00 p.m. on October 23, 2018. Potential bidders shall submit their applications by hand to the General Directorate of Renewable Energy with a letter of guarantee in an amount of US$ 20 million. The assessment of the applications will be made on the same day and at the same address at 14.00 p.m. Bidders will be informed by the administration on the place and date of the tender.

 

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.