Description

Turkey

Business ID: L#20240601

Wind power plants in Turkey have been gaining significant momentum and recognition in recent years. With a geographical advantage that includes an extensive coastline and various regions with high wind potential, Turkey has emerged as a major player in the global wind energy market.

Turkey’s wind power capacity has experienced tremendous growth over the past decade. According to the Turkish Wind Energy Association, the country’s installed capacity reached 9.6 GW by the end of 2020, making it the fourth-largest wind power producer in Europe. This impressive growth can be attributed to favorable government policies promoting renewable energy, generous feed-in tariffs, and an attractive investment climate.

One of the key regions for wind power plant installations in Turkey is the Aegean region, particularly Izmir, Balikesir, and Canakkale. These areas benefit from strong and consistent winds, making them ideal for harnessing wind energy. Additionally, coastal regions such as Istanbul, Tekirdağ, and Edirne have also witnessed a surge in wind power installations.

Wind power plants not only contribute to reducing carbon emissions, but they also stimulate economic growth and create job opportunities. The construction and operation of wind farms require a significant workforce, providing employment opportunities for local communities. Moreover, wind energy investments attract both domestic and foreign direct investments, contributing to the country’s overall economic development.

Furthermore, wind power plants play a crucial role in diversifying Turkey’s energy mix and reducing dependence on fossil fuels. As a country heavily reliant on energy imports, wind energy helps reduce the burden on imported natural gas and contributes to energy security.

However, like any other renewable energy sector, wind power plants face challenges. The intermittency of wind resources and possible grid integration issues require efficient management and investment in energy storage systems. Balancing the intermittent nature of wind power with the demand is essential for a reliable and stable energy supply.

Overview

The Portfolio consists of wind power plants with solar extensions in Turkey, with a total envisaged installed capacity of approximately 163 MWp and an annual electricity generation capacity of 368 GWh.

Status

The construction of the Metafor WEPP in Bingöl is completed, and the plant became operational in March 2023. Its solar extension is expected to be commissioned in September 2023.

In Ağrı, the Yakaağzı WEPP and its solar extension are also expected to be commissioned in September 2023.

Revenue Stream

The Portfolio will sell the electricity it generates under a feed-in tariff (FiT) system. The FiT period for Metafor and Yakaağzı will expire in 2031 and 2030, respectively. During the FiT period, the FiT price will be $94 per MWh in the first five years and $73 per MWh in the remaining years.

Ongoing initiatives to expand the installed capacity in both sites include:

• 385 MW and 350 MW wind power capacity extension rights were allocated from the Turkish Electricity Transmission Corporation. These rights will be incorporated into the existing hybrid licenses after the COD (Commercial Operation Date) of both wind plants in Bingöl and Ağrı, respectively.
• With sufficient land area for expansion, the management aims to increase the extension capacity of each wind and solar project to 150 MWp in both sites, leading to a total extension capacity of 600 MWp.