According to industry media “Photovoltaic Magazine”, Turkey has officially launched the bidding activity for large-scale photovoltaic ground power station projects. The Ministry of Energy and Natural Resources of the country announced specific planning details regarding electricity prices, project locations, and scale.
This “long overdue” tender was originally scheduled for January last year, and has been postponed several times for various reasons. The industry generally believes that, given the installed capacity of this tender, it is expected to add new vitality to the Turkish photovoltaic market.
Boost the confidence of the development of the local photovoltaic industry
It is understood that the photovoltaic ground power station project initiated this tender is part of the Turkish Renewable Energy Project (YEKA). According to the plan, the total installed capacity of this tender is 1 GW, involving 74 projects, of which the minimum installed capacity of a single project is 10 MW and the maximum installed capacity is 20 MW. The project will be distributed in 36 cities including Aksaray, Ankara and Antalya.
According to the plan of the Ministry of Energy and Natural Resources of Turkey, the maximum price of electricity bidding for this project is 0.044 USD/kWh. The winning bidder can sign a 15-year electricity price purchase agreement.
“Photovoltaic Magazine” quoted the industry’s point of view that in the past two years, the development of the Turkish photovoltaic industry has not been smooth, and the newly installed capacity has been showing a downward trend. Since the beginning of this year, the signs of recession in the Turkish photovoltaic industry have become more apparent due to the impact of the new coronary pneumonia epidemic. Therefore, the current opening of tenders for large-scale photovoltaic ground power stations will greatly boost confidence in the development of the Turkish photovoltaic industry.
In fact, the bidding for the large-scale photovoltaic ground power station project was first announced in January last year. At that time, the specific scale allocation was composed of three large-scale photovoltaic power plants with capacities of 500 MW, 300 MW, and 200 MW. However, due to the poor economic prospects of Turkey at that time, the tender for the project was postponed to April this year at the request of the developer, and the specific scale of the project was re-planned, adjusted to 100 10 MW projects, involving 39 regions. Entering this year, affected by the new Coronary Pneumonia epidemic, the bidding stalled again, and it was not relaunched until July, and the specific planning was adjusted again.
Turkish official statistics show that in 2018, the country’s new installed capacity of photovoltaic power generation reached 2.4 GW. However, due to factors such as the delay of large-scale photovoltaic ground power station projects, in 2019, the new installed capacity of photovoltaic power generation fell to 923 MW; in the first five months of this year, this data was sharply reduced to 157 MW.
The professional consulting agency KRC believes that from the current market response, Turkey’s tender for photovoltaic ground power stations is very popular. It is expected that this year, the newly installed capacity of photovoltaic power generation in Turkey can be restored to about 800 MW.
Barriers to developer participation
According to the regulations of the Turkish Ministry of Energy and Natural Resources, the tender for the large-scale photovoltaic ground power station will be held in mid-to-late October. However, some insiders pointed out that for developers who want to participate in the tender, there are actually many obstacles to be overcome.
It is understood that because YEKA is a plan established by the Turkish government to promote the development of renewable energy, not only to promote the increase in installed capacity, but also to improve the entire industrial chain and promote cost reduction. For this reason, for photovoltaic projects, YEKA stipulates that more than 60% of the components used in the project must be produced locally, and the successful bidder must set up a photovoltaic module factory within 21 months of the project contract, and the photovoltaic power plant should be built within 36 months Realize grid-connected power generation.
The above requirements are also one of the main reasons leading to the repeated delays in this tender. The developer believes that after more than a year of delay, although the cost of photovoltaic power generation has decreased, but because the tender is settled in the Turkish currency New Lira, the current inflation rate is high, which will lead to increased input costs. At the same time, according to regulations, more than 60% of the components used in the project must be produced in local areas, and the prices of related products in Turkey are higher than imported products, which will also increase costs to a certain extent.
New policy boosts demand and attracts investment
According to statistics from the Turkish Photovoltaic Association, as of the end of 2019, the cumulative installed capacity of Turkish photovoltaic power generation was 5.4 GW. According to the photovoltaic development roadmap formulated by the association, the cumulative installed capacity of Turkish photovoltaic power generation will reach 14 GW by 2023, more than 20 GW by 2026, and 38 GW by 2030.
If according to the current construction speed, Turkey will have a lot of challenges to complete the photovoltaic installation target. However, KRC and other research institutions believe that after the implementation of the new green electricity price policy in Turkey, more local consumers will choose renewable energy power, and market demand will further increase, which in turn will stimulate developers to invest in more renewable energy power projects.
In early July, the Turkish government stated that within the framework of power market reforms, it revised the power market renewable energy security regulations and announced a new draft. According to the draft, Turkey intends to introduce renewable energy tariffs to consumers, so that power consumers can choose to purchase certified clean energy power through the grid.
In order to implement this new regulation, Turkey will also amend the relevant laws and regulations of the electricity market, and at the same time compile regulations and policies concerning the purchase of renewable energy electricity. It is reported that the renewable energy price is expected to be officially announced in August.
“Photovoltaic Magazine” believes that renewable energy prices are the main means for Turkey to promote the development of the local renewable energy industry in the future. “This represents Turkey’s desire to start with the market, continuously increase market demand, provide new options for power consumption end users, and at the same time promote investment in the Turkish renewable energy market.”