Feed-in tariff

Updated: 19.12.2017

Author: Tim Sternkopf

In Turkey, renewable electricity production is mainly promoted through a guaranteed feed-in tariff. The YEK-Law differentiates the amount of the fixed feed-in-tariffs depending on the technology and whether the plant components were produced in Turkey or not. 

Eligible technologies

All renewable electricity generation technologies are eligible.

Wind energy

Eligible, both onshore and offshore (§ 3 art. 8 YEK)

Solar energy

Eligible, both PV and CSP (§ 3 art. 8 YEK)

Geothermal energy

Eligible (§ 3 art. 8 YEK)

Biogas

Eligible (§ 3 art. 8 YEK)

Hydro-power

Eligible, both traditional hydro-power and ocean energy (§ 3 art. 8 YEK)

Biomass

Eligible (§ 3 art. 8 YEK)

Amount

The feed-in tariff varies according to the energy source and the origin of the plant components. It has to start to be in operation between 01.01.2016 and 31.12.2020 (Ministerial Decision 2013). The feed-in tariff and the local-content bonus for the following energy sources are fixed in US dollars in a YEK amendment from 2011 in the following link: http://www.resmigazete.gov.tr/eskiler/2011/01/20110108-3-1.pdf  The feed-in tariff under the YEKA scheme is tendered via a public auction. It also includes conditions for R&D activities, local-content regulations, etc (§ 15 YEKA). All prices are based on US dollar - Euro exchange rates from 19.12.2017.

Wind energy

  • feed-in tariff: USDct 7.3 (€ct. 6.2) per kWh on- and off-shore
  • local-content bonus: USDct 0.6-3.7 (€ct 0.5-3.1) per kWh

Solar energy

PV:

 

  • feed-in tariff: USDct 13.3 (€ct. 6.2) per kWh
  • local-content bonus: USDct 0.6-6.7 (€ct 0.5-5.7) per kWh

CSP:

 

  • feed-in tariff: USDct 13.3 (€ct 11.3) per kWh
  • local-content bonus: USDct 0.6-9.2 (€ct 0.5-7.8) per kWh

Since 31 December 2013, the Council of Ministers is authorised to determine the total capacity of new installed solar installations which have a YEK permission. (§ 6/C art. 5, YEK)

Geothermal energy

  • feed-in tariff: USDct 10.5 (€ct 8.9) per kWh
  • local-content bonus: USDct 0.7-2.7 (€ct 0.6-2.3) per kWh

Biogas

  • feed-in tariff: USDct 13.3 (€ct 11.3) per kWh
  • local-content bonus: USDct 0.4-3.8 (€ct 0.3-3.2) per kWh

Hydro-power

  • feed-in tariff: USDct 7.3 (€ct 6.2) per kWh 
  • local-content bonus: USDct 1-2.3 (€ct 0.8-1.9) per kWh

Biomass

  • feed-in tariff: USDct 13.3 (€ct 11.3) per kWh
  • local-content bonus: USDct 0.4-1.8 (€ct 0.4-1.5) per kWh

Addressees

Entitled party: In the first place, this support scheme entitles electricity producing juridical persons with a YEK-License, which is necessary to benefit from the support scheme (§ 6 art. 1 YEK). Also entitled are natural or juridical persons without a YEK-license producing RES-electricity in a plant with a maximum capacity of 1 MW (§ 14 art. 1 (b) EML). This limit can be set to 5 MW by a decision of the Council of Ministers (§ 14 art. 2 EML). For geothermal power plants additional operation licences are necessary as specified in § 6 Geothermal Law.

Obligated party: The obliged party is each grid operator supplying the consumers with electrical energy (§ 6 art. 6 YEK).

Procedure

Process flow

  • A limited or joint-stock company with a production license (§ 7 art. 1, EPLY) applies until 31 October to the Energy Market Regulatory Authority (EMRA) to get a YEK-License for the next year (§ 6 art. 1, YEK-Regulation). The license needs to be renewed every year until 31 October via an application to EMRA if the renewable energy plant operator wishes to continue benefitting from the support mechanism (see § 3 YEK amendment from 08.01.2011).
  • Electricity production facilities based on solar power are required to satisfy requirements examined during inspections from EMRA to acknowledge the production amounts for at least the last year (§ 6 art. 5, YEK).
  • Electricity producing facilities based on hydro-power need to get the permission of the State Hydraulic Works (DSİ), before the construction (§ 6/A art., 1 YEK).
  • The Market Financial Reconciliation Center (PMUM) shall announce the RES total amount for each invoice period and determine the payment obligation rate of each supplier, which is than invoiced to the supplier in question and the collections made are paid pro rata to the entities (§ 6 art. 6 YEK).

Competent authority

The Ministry of Energy and Natural Resources shall provide coordination in implementation, steering, monitoring and assessment of the fundamental principles and obligations specified in this law, and in planning the measures to be taken (§ 9 YEK).

For renewable energy zones under the YEKA regulation, the General Directorate of Renewable Energy (GDRE) is the contact partner for tender participants. It specifies both the tendered capacity as well as the areas and supports the acquisition of land rights (§ 19 YEKA). Furthermore it ensures the necessary steps for the grid connection in cooperation with the transmission grid operator TEIAS (§ 19/c,ç YEKA).

Cap

The total capacity of newly installed solar installations was limited to 600 MW until 31 December 2013, while the maximum capacity of a single installation was limited to 50 MW (§ 6/C art. 5 YEK). Since 31 December 2013, the Council of Ministers is authorised to determine the total capacity of new installed solar installations which have a YEK permission. (§ 6/C art. 5 YEK)

The tendered capacity for solar power in Karapinar was 1,000 MW with a ceiling price of USDct 8 (€ct. 6.8 as of December 2017)per kWh (YEKA Solar Tender). In the wind tender, tendered capacity amounted to 1,000 MW with a ceiling price of USDct 7 (€ct. 5.9 as of December 2017) per kWh (YEKA Wind Tender). Ceiling price as well as tendered capacity is announced with each tender call separately.

Eligibility period

The feed-in tariff is limited to 10 years. The bonus tariff for local-content support is limited to first 5 years of operation (§ 6 art. 1 YEK). Power stations in operation before 31.12.2020 are eligible for the support (Ministerial Decision 2013). In order to continue benefitting from the support scheme, the license needs to be renewed every year until October 31st via an application to EMRA (see § 3 YEK amendment from 08.01.2011).

Under the YEKA scheme the feed-in tariff is set for 15 years and determined by a tender process (YEKA Solar Tender; YEKA Wind Tender). The licence of production is granted for 30 years (§ 13 Art. 4, YEKA).

Distribution of costs

Consumers

The costs of the feed-in tariff are borne by the consumers via their electricity bills (§ 6 art. 1 YEK).

Distribution mechanism

  • The costs of the support scheme are borne by the grid operator. The total amount will be determinate by the PMUM and then invoiced to the supplier (§ 6 art. 6 YEK).
  • The grid operators are obliged to pay that amount pro rata to the plant operators (§ 6 art. 6 YEK).
  • The costs of the grid operators are borne by the consumers in terms of their electricity bills (§ 6 art. 6 YEK).

Turkey

Further information

  • T.C. Enerji Piyasası Düzenleme Kurulu (EPDK) - Energy Market Regulatory Authority (EMRA)
  • +90 312 201 40 01-02
  • EPDK website