Description

Turkey

Business ID: L#20240661

Hydropower plants play a crucial role in Turkey’s energy sector, as the country is blessed with abundant water resources thanks to its unique geographical location. With a total installed capacity of around 30 GW, hydroelectricity is the largest source of renewable energy in Turkey, accounting for almost one-third of the country’s electricity generation.

Turkey’s hydropower potential is primarily concentrated in the eastern part of the country, where the Tigris and Euphrates rivers flow, as well as in the Black Sea region, where numerous rivers have strong water flows throughout the year. The government has been actively investing in the development of hydropower plants in these regions to diversify the country’s energy mix and reduce its dependence on imported fossil fuels.

One of the largest hydropower projects in Turkey is the Ilisu Dam on the Tigris River, which has a total installed capacity of 1,200 MW and is expected to generate around 3.8 billion kWh of electricity annually. The dam is part of the Southeastern Anatolia Project (GAP), a comprehensive development project that aims to improve the socio-economic conditions of the region by harnessing its water resources for irrigation, power generation, and flood control.

In addition to large-scale projects like the Ilisu Dam, Turkey also has a significant number of smaller hydropower plants that contribute to the country’s electricity supply. These smaller plants are typically run-of-river facilities that do not require large dams or reservoirs, making them more environmentally friendly and less disruptive to local ecosystems.

One of the key advantages of hydropower plants is their ability to provide reliable and stable electricity generation, as water flow is relatively predictable and consistent throughout the year. This can help mitigate the intermittency of other renewable energy sources like wind and solar power, ensuring a constant supply of electricity to meet the country’s growing energy demand.

Operational portfolio of three HPPs in Türkiye’s Black Sea area with a total combined capacity of 20.9 MW and an extension option with up to 9.7 MWp solar (hybrid).

Portfolio highlights

1. Attractive FiT denominated in USD: guaranteed tariff of 73 USD/MWh for 10 years, additional revenue of 23 USD/MWh for the utilization of local content in equipment (for the first 5 years of operation)*.
2. Fully automated design of the plants allows for manless/“remote control” operation and low operating expenditures also given by low labor cost in Türkiye.
3. Joint operation of all three HPPs ensures highly efficient production forecast and minimized balancing costs (actual balancing costs in all three plants are zero, due to a sales contract with an energy trader)
4. Dam reservoir structure available at the HPP allows for additional revenues from active regulation services provided in cooperation with the Turkish water directorate.
5. Potential for “solar extension” – HPP may also become a site for solar power generation lowering the risk of production discrepancies caused by hydrological conditions and benefitting from actual FiT as hybrid license.
6. The Seller is a highly experienced developer and operator of renewable power plants, specifically hydropower facilities ensuring for and adhering to superior quality standards.