New Feed-in Tariffs for Renewable Energy in Turkey are Introduced
Amid all rumours and predictions, the Presidential Decree No. 3453 (the “Decree”) introduced the new support mechanism for renewable electricity generation (“YEKDEM”) on 30 January 2021. The new YEKDEM mechanism covers the renewable generation facilities that are put into operation between 1 July 2021 and 31 December 2021. As in the previous YEKDEM mechanism, being operational refers to the official provisional acceptance of the power plant by the authorities.
In the light of the recent foreign currency fluctuations, the new YEKDEM mechanism is unsurprisingly based on Turkish Lira with an adjustment including price index, EUR and USD elements. The feed-in tariff prices will also be subject to caps which are in USD. Basically, the prices cannot exceed these USD caps after the adjustments.
The term of the tariffs is again for 10 years with five years of local content premium.
The newly announced feed-in tariff prices are as follows:
|
Type of the Generation Facility |
Price (TL Kuruş/kWh) |
Support Mechanism Period (Year) |
Local Content Premium (TL Kuruş/kWh) |
Local Content Premium Period (Year) |
|
|
Hydro |
40.00 |
10 |
8.00 |
5 |
|
|
Wind |
32.00 |
10 |
8.00 |
5 |
|
|
Geothermal |
54.00 |
10 |
8.00 |
5 |
|
|
Biomass |
Landfill Gas / Waste Tires |
32.00 |
10 |
8.00 |
5 |
|
Biomethanization |
54.00 |
10 |
8.00 |
5 |
|
|
Thermal Disposal |
50.00 |
10 |
8.00 |
5 |
|
|
Solar |
32.00 |
10 |
8.00 |
5 |
|
The adjustments will be made on a quarterly basis and include the following components:
- Producer price index (26%)
- Consumer price index (26%)
- USD (24%)
- EUR (24%)
The feed-in tariff prices will be subject to the following caps:
|
Generation facility type based on renewable energy source |
Upper limit based on updating (USD-cent/kWh) |
|
|
Hydro |
6.40 |
|
|
Wind |
5.10 |
|
|
Geothermal |
8.60 |
|
|
Biomass
|
Landfill Gas / Waste Tires |
5.10 |
|
Biomethanization |
8.60 |
|
|
Thermal Disposal |
8.00 |
|
|
Solar |
5.10 |
|