The first day of the Wind Power Plant (“WPP”) contests has been completed on 25 December 2017 at Holiday Inn Hotel, Ankara. The successful bidders and the awarded tariffs are as follows:
|Region||Company||Project||Capacity (MW)||Bid (USD cent/kWh)|
|Amasya – Samsun||Doğages Elektrik Üretim A.Ş.||Doğages WPP Project||49||-0,88|
|Ekores Enerji Elektrik Üretim A.Ş.||Taşova WPP Project||11||-0,55|
|Çorum – Kastamonu – Sinop||Ekores Enerji Elektrik Üretim A.Ş.||Kozcu WPP Project||5||-0,71|
|Res Anatolia Holding A.Ş.||Topaz WPP Project||65||-0,66|
|Antalya||Enyat Enerji Yatırımları ve Elektrik Üretim Ticaret A.Ş.||Alanya WPP Project||50||-1,18|
|Dere Enerji A.Ş.||D3 WPP Project||10||-0,57|
|D1 WPP Project||10||-0,48|
|Akhisar Enerji A.Ş.||Dökükdağı WPP Project||30||-0,52|
|Bitlis – Muş||Difer Enerji Sanayi ve Ticaret A.Ş.||Miskevank WPP Project||20||7,10|
|Beres Elektrik Üretim A.Ş.||Örenlik WPP Project||20||6,95|
|Bolu – Düzce – Sakarya||Günışığıges Elektrik Üretim A.Ş.||Günışığıges WPP Project||30||3,78|
|Elazığ||Buca Rüzgar Güneş Yenilenebilir Enerji ve Elektrik Üretim A.Ş.||Buca WPP Project||40||-0,63|
|Gaziantep – Kilis||Lacivert Yenilenebilir Enerji ve Elektrik Üretim A.Ş.||Lacivert WPP Project||40||-1,63|
|İstanbul||Gelgit Yenilenebilir Enerji Elektrik Üretim A.Ş.||Gelgit WPP Project||49,5||-1,71|
|Polat Enerji Sanayi Ticaret A.Ş.||İstanbul WPP Project||0,5||-0,65|
HOW DOES THE PRICING WORK?
WPP contests are conducted through Dutch auction model where bidders contest with each other to submit the lowest rate. The contest starts with the minimum purchase guarantee price of 7,3 USD cent/kWh, which is set out under Schedule 1 of Law No. 3465 on Electricity Generation from Renewable Energy Resources (“Renewable Energy Law”). Accordingly, the bidder who submits the lowest rate is awarded with the tender. In the event the successful bidder is awarded at a rate above 0 USD cent/kWh, it will benefit from the electricity purchase guarantee based on a rate which will comprise of the awarded rate as well as the domestic production contribution which may amount up to 3,7 USD cent/kWh if it satisfies the criteria set out under Schedule 2 of Renewable Energy Law. However, rates tend to drop as low as 0 USD cent/kWh (or even to minus values) due to high demand in the market, meaning that the bidders are willing to waive from the electricity purchase guarantee as well as the domestic production contribution in order to be merely awarded with the project. In the event the successful bidder is awarded at a rate of 0 USD cent/kWh, it will be able to freely sell the electricity it generates by undertaking the demand risk in the market. On the other hand, in the event the successful bidder is awarded at a rate below 0 USD cent/kWh, along with the demand risk in the market, it also undertakes to pay the amount below 0 USD cent/kWh to Turkish Electricity Transmission Corporation (TEİAŞ).
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.