“The Turkish wind industry expects at least 2000 MW of YEKA every year and our recommendation is that the wind YEKA calendar for the next 4 years to be determined today.”

The Turkish wind energy sector, which closed 2024 with an installed capacity of 12,575 Megawatts (MW), made an optimistic start to 2025 with the applications for Renewable Energy Resource Areas (YEKA) of 1,200 MW, which started to be received in January. The wind energy sector, which remained well below its potential by providing only a 770 MW installed capacity increase in 2024, expects at least 2,000 MW YEKA competitions to be held each year, the results to be announced and the projects to be put on the field.

Making assessments regarding the current status and future vision of the sector, Chairperson of the Board of Energy Industrialists and Business Association (ENSİA), Alper Kalaycı noted that at least 1 billion 200 million dollars will be invested in the sector with the YEKA competition held by the Ministry of Energy and Natural Resources on January 21, and reminded that the sector suffered a loss of blood as a result of the YEKA competition not being held in the last two and a half years. Kalaycı stated that the last tender was managed very well by our Ministry of Energy, was transparent and carried out as planned, and drew attention to the importance of ensuring the continuation of this situation.

The two and a  half year break caused blood loss

Kalaycı, who pointed out that hundreds of companies operating in the main and sub-industry formed a large value chain together with the investors who won YEKA competitions, stated that imposing an obligation on investors to use turbines with a high local content will also make a serious contribution to the Turkish wind energy industry.

Emphasizing that all companies operating in the sector expect YEKA to be carried out on a scale of at least 2 thousand MW every year, ENSİA Chairperson Alper Kalaycı made the following assessment:

“Our suggestion is that the YEKA calendar for the next four years be determined and announced to local and foreign investors by our Ministry. If we clarify these dates today, investors will be able to see ahead and make their plans. A wind turbine consists approximately 8 thousand parts and components. Our country did not hold a YEKA competition for a very long time, such as two and a half years, and the sector has almost entered a waiting state.

This year, the sector has become more excited again. If the continuity of these projects is ensured, the manufacturers in the wind energy sector will have a better view of their future planning and new investments. We think that foreign investors will also evaluate this action positively and will be eager for new investments. We also think that domestic and foreign investors in Türkiye will be able to expand their businesses in the production of some components as their foreseeable ideas about YEKA are formed.”

 ‘’we Can Reach 2035 Targets Easily’’

Alper Kalaycı underlined that it would be easy to achieve Türkiye’s revised wind and solar energy installed power target of 120 thousand MW for 2035 with the right planning. Kalaycı stated that Türkiye has a high potential in wind energy and that 2,500-3 thousand MW of wind energy could be put into operation each year, and that in this case, the domestic market would become attractive.

Kalaycı also reminded that apart from terrestrial wind power plants, there is a target of 5 thousand MW offshore wind energy in 2035, and added that they expect the tender processes to start as soon as possible in this field.

It’s time to act in the offshore wind energy

Alper Kalaycı added that they were particularly proud of ENSİA’s pioneering of the first Industrial Inventory study focusing on offshore wind energy in Türkiye, and continued as follows:

“Our companies operating in the wind industry in Izmir constitute 85 percent of the total turnover of the Turkish wind industry. We are ready to demonstrate this success in the production of offshore wind power plants. The design of the Çandarlı Port and feedback area with a structure focused on the production of wind power plants will enable Türkiye to become the world’s most important production and export center in this field. As the clean energy sector, we believe in this vision of the Ministry of Industry and Technology and support it to the end. We emphasize at every opportunity that these investments will provide great value to our country in terms of employment. Offshore wind energy sector, which have a large mechanism that places orders to many sectors, can provide ten times more employment compared to terrestrial wind energy. Türkiye’s position among the world’s most advanced countries in the shipyard sector is among the factors that reduce the dependency of offshore wind energy on imports in all equipment production and assembly. This advantage makes it possible for all engineering calculations, designs, R&D and construction of all facilities to be built on the sea to be done domestically with the means of Turkish companies.”

1. Introduction

Turkiye current total installed capacity is approx. 106 GW of which wind power has a share of 10%. Wind installed capacity has reached approximately 13 MW at the end of January 2024. In terms of onshore wind power, it is a mature market and many experienced contactors can be found within Turkiye for transport, installation, civil scope, etc. The local production of wind turbine components is promoted through the provision of a surplus additional feed-in rate for the wind farm operator. Turbine manufacturers without local manufacturing must overcome this disadvantage with price discounts on the turbine price. The Ministry of Energy and Natural Resources has published the National Energy Plan of Turkiye covering the period 2020-2035. In the scenario prepared by the Ministry, in the period 2020 – 2035, primary energy consumption will reach 205.3 Mtep (Million tons of oil equivalent), electricity consumption will reach 510.4 TWh (Terawatt Hours), while the electricity installed capacity will reach 189.7 GW in total. Offshore wind target is 5 GW till 2035. World Bank report concluded that Turkiye has nearly 75 gigawatts (GW) of technical potential for offshore wind. The report detailed Turkiye’s technical potential for offshore wind. The most attractive areas for offshore wind lie in the northwest in the Aegean Sea where wind speeds rise to 9 meters per second (m/s) the report said. The “Offshore Wind Energy Turkey Roadmap” Report, in which Turkey’s offshore wind energy potential is analyzed and the road map to be followed for the development of this field is stated, was shared with the sector by Turkish Offshore Wind Energy Association (DURED). Moreover, the “Offshore Wind Energy Sector Inventory” Report, which involves all stakeholders of offshore wind energy in Türkiye, was also presented.

2. Offshore Wind Power in Turkiye

There are numerous studies related to offshore wind power potential of the country. Amongst, World Bank Group report mentioning that Turkiye has nearly 75 gigawatts (GW) of technical potential for offshore wind. The report also detailed Turkiye’s technical potential for offshore wind. “The most attractive areas for offshore wind lie in the northwest in the Aegean Sea where wind speeds rise to 9 meters per second (m/s),” the report said.

Postponed 1200 MW Offshore Wind Farm Tender

Turkiye has begun a new chapter in its long-term policy on renewable energy with the Regulation on Renewable Energy Resource Areas (“RERA”), which came in force in October 2016. RERA establishes another set of incentives designed to encourage the effective and efficient use of renewable energy resources on state- and treasury-owned as well as privately owned sites in Turkiye. A central plank of the policy on renewables is the recently announced RERA Offshore Wind Power Farm project – Turkiye’s first and the world’s largest offshore wind farm, which is expected to yield investment of USD 3 billion. The wind farm should start generating electricity in 2023 – coinciding with the 100-year jubilee of the Republic of Turkiye – with a total capacity of 1,200 MW.

General Information on Postponed Tender

The tender announcement for the RERA Offshore Wind Power Farm was published in the Official Gazette in Turkiye on June 21, 2018. Saros (Edirne-Enez, Keşan), Kıyıköy (Kırklareli-Vize) and Gelibolu-Şarköy (Çanakkale-Tekirdağ) are among the nominee regions for the project. See figure below on 100m wind power potential atlas with circles.

Figure 1. Offshore wind farm postponed tender locations.

Postponed Offshore Tender Details

The investors contracted for the project will establish the offshore wind power plant by choosing either two (2) of the listed areas or two (2) other areas it has selected itself, provided it carries out the necessary measurements and surveys. The investor must first start work on an 840-MW power plant and then continue with the remaining part to reach a total of 1,200 MW. The investors will be able to use the remaining capacity as long as they:

•notify the Ministry of Energy and Natural Resources, General Directorate of Renewable Energy in writing within forty-two (42) months following the signing of the agreement;

•complete the installation within seventy-two (72) months.

Postponed Tender Qualifications

As for the tender qualifications, legal entities or partnerships formed from multiple legal entities or consortia are allowed to apply for the tender. In order to obtain the tender specifications, groups must pay twenty thousand Turkish Lira (app. EUR 3,700). The amount has to be deposited in the bank account determined in the Official Gazette.

In addition, a partially or completely cash convertible definite letter of guarantee of one (1) year amounting USD 20,000,000 should also be submitted to the Administration.

The winning party will be obliged to submit a letter of guarantee of ten (10) years amounting to USD 100,000,000 to the Administration prior to the execution of the energy sales agreement.

The Official Gazette indicates that the ceiling price for electricity produced at the country’s first offshore wind farm will be set at US Cent 8 (eight)/KWh and that the tender will be carried out through an auction by underbidding. The investor who submits the lowest bid will execute an agreement, including the first 50 TWh of electricity production starting from the temporary admission.

The tender location, date and time will be announced by the Administration.

3. Outlook for Offshore Wind Power Market in Turkiye

Based on Turkiye’s success in onshore wind, the Turkish Government announced plans in early 2018 to expand into offshore wind which is postponed. Offshore wind is experiencing global and increasing pressure to deliver energy at lower and lower costs. At the same time, the countries where the wind farms are being installed are increasingly aiming to profit from the manufacturing and installation of the wind farms, as well as the lower energy cost. In 2022, it is expected that 1500 MW capacity tender to be announced by Energy Ministry.

National Energy Plan of Turkiye

The Ministry of Energy and Natural Resources has published the National Energy Plan of Turkiye covering the period 2020-2035. In the scenario prepared by the Ministry, in the period 2020 – 2035, primary energy consumption will reach 205.3 Mtep (Million tons of oil equivalent), electricity consumption will reach 510.4 TWh (Terawatt Hours), while the electricity installed capacity will reach 189.7 GW in total.

Installed power planning in the field of energy for 2035

Wind energy: 24.6 GW onshore + 5 GW offshore total 29.6 GW

Solar energy: 52.9 GW

Hydroelectric power: 35.1 GW

Other renewable energy: 5.1 GW

Nuclear power: 7.2 GW

Conventional sources: 59.8 GW

Electrolyzer capacity: 5 GW

4. Power Purchase Tariff for Offshore Wind

The Turkish Republic Presidency has published a decree (Decree no. 7189) dated May 1, 2023 and announced new 10-year feed-in tariffs and 5-year domestic production incentives for renewable power projects commissioned between 1 July 2021 and 31 December 2030 under the new renewable energy support mechanism (YEKDEM). The feed-in tariff levels are determined in Turkish lira and will be subject to a quarterly escalation mechanism, based on the producer price index, consumer price index, US dollars purchase rates and euro purchase rates; FiTs in US dollars will be subject to a cap.

5. MetOcean and Wind Measurement Site Investigation in Türkiye

The Ministry of Energy and Natural Resources (MENR) has received a grant from the European Union toward the cost of the EU Instrument for Pre-Accession (IPA) Energy Sector Program Phase IV Project, and intends to apply part of the proceeds for Consulting Services. The Consulting Services (“the Services”) include the conduction of meteorological and oceanographic analysis and measurements at specific offshore sites to be selected by MENR. The studies include:

1. Analysis, measurement and survey activities informed through the application of meteorological and oceanographic measurement systems,

2. Acquirement of high-quality and reliable meteorological and oceanographic data,

3. Preparation of meteorological and oceanographic measurement system application and data analysis reports,

4. Preparation of geological, geophysical and geotechnical seabed survey reports and assessment of all survey outputs, and other relevant activities. (Geological, geophysical and geotechnical measurements will be carried out under a separate contract while the data obtained from the relevant measurements will be assessed under this assignment.)

IPA Sites selected in Marmara Sea. 

3 companies already did bid for the MetOcean Tender and the process is pending.

Figure 2. IPA Sites selected by the MENR.

6. Environment and Social Commitment Plan for Offshore Wind Support Project

The Republic of Türkiye (the Recipient) will implement the EU Instrument for Pre-Accession (IPA) Energy Sector Program Phase IV– Offshore Wind Support Project (the Project), through the Ministry of Energy and Natural Resources (MENR). The International Bank for Reconstruction and Development (the Bank), acting as administrator of the European Union Instrument for Pre-Accession Trust Fund, has agreed to provide financing for the Project, as set out in the referred agreement. The Recipient through MENR shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Bank. The ESCP is a part of the Grant Agreement. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESSs, and in form and substance, and in a manner acceptable to the Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Bank. As agreed by the Bank and the Recipient, through MENR, this ESCP shall be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient, through the MENR, and the Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Recipient, through MENR. The Recipient, through MENR shall promptly disclose the updated ESCP. This has been already awarded by RPS Global Inc.

7. RERA Offshore Wind Project Sites

Within the scope of the Renewable Energy Resource Zone (REZ) Regulation; Ministry of Energy and Natural Resources announced four Offshore WPP Candidate REZ.

Figure 3. RERA Offshore wind project sites selected by the MENR.

References: Turkish Offshore Wind Energy Association, Denizüstü Rüzgar Enerjisi Derneği (DÜRED). www.linkedin.com/company/dured-towea/