Turkey has updated its Renewable Energy Resources Support Mechanism (YEKDEM) to include wave and tidal energy facilities and offshore wind farms for the first time. The previous feed-in tariff scheme for renewable electricity plants in Turkey expired in mid-2021. According to the new decision, operators will now be entitled to preferential power prices for installations commissioned between July 1, 2021, and the end of 2030. The YEKDEM mechanism is for ten years, except for geothermal facilities and pumped storage hydropower, which have a duration of 15 years.
This decision marks a significant step for Turkey's renewable energy sector. “The inclusion of wave and tidal energy facilities and offshore wind farms in the updated YEKDEM is a significant milestone for Turkey's renewable energy industry,” said Mustafa Serdar Ataseven, founder of Wave for Energy, a Turkish wave energy company. “This decision paves the way for the development of new projects and attracts investments in these fields.”
The updated YEKDEM also offers incentives for renewable energy facilities that meet Turkey's requirements regarding the share of domestic equipment and workers. For most technologies, beneficiaries will receive an additional TRL 0.288 per kWh (0.0148 cents per kWh) for five years within the period. However, offshore wind farms were allotted TRL 0.3845 per kWh or 0.0197 cents per kWh, together with pumped storage, tidal and wave installations, and electricity storage systems integrated with wind or solar power systems.
The combination of storage with solar and wind power can benefit from the domestic content bonus for ten years, as can wave and tidal systems and pumped storage hydropower plants. Waste-to-power plants have an additional TRL 0.2158 (0.0111 cents) if they meet the domestic value standards.
Pumped storage hydropower plant operators will receive the strongest incentives, followed by the geothermal power category. The tariffs are expressed both in US dollars and Turkish liras and are regularly adjusted once a month.
“This new tariff structure is a positive development for the renewable energy industry in Turkey,” said Gökçe Mete, General Manager of Vestas Turkey, a leading wind turbine manufacturer. “The new incentives and bonuses for domestically produced equipment and workers will encourage more companies to invest in Turkey and help develop the local supply chain.”
The basic range for solar power, onshore wind, and biomass is between 4.95 and 6.05 cents per kWh. The categories of geothermal energy and pumped storage have the highest tariff at 9.45 to 11.55 US cents per kWh. For photovoltaics integrated with wind or solar power generation installations, which makes them hybrid power plants, the level is between 5.85 and 7.15 cents per kWh.
Overall, the updated YEKDEM is expected to accelerate Turkey's transition to a more sustainable energy future by supporting the development of new renewable energy projects and encouraging investments in the local supply chain.
