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Saturday, January 23, 2010

Renewable energy law confusion in Turkey

No new renewable energies law for Turkey until 2013

22/1/2010

The Turkish government has decided to extend its current Renewable Energies Law to 2013. The news has disappointed the sector, which had seen expectations rise after it was revealed that the Turkish government had prepared a draft of the new law, which included a 60% increase in the feed-in tariff for wind power.

The u-turn in Ankara means two things: firstly, that the current feed-in tariff for wind power – of €50-55 per MWh – will remain in force for the next three years, and secondly, that the proposed feed-in tariff of €80/MWh for onshore wind and €170/MWh for offshore wind included in the draft of the new law will not be introduced for some time (for photovoltaic solar, the proposed tariff is €250/MWh).

Despite this, the sector is not completely against the extension of the existing law, since it does “provide visibility beyond 2010; the year in which it was initially due to expire”, said one Spanish wind developer operating in Turkey and consulted by Renewable Energy Magazine. The feed-in tariff is guaranteed for the first two years a wind farm in operation, while the sector hopes that wind farms connected after 2010 will be able to receive the new tariff in the event that the new law is approved by Parliament.

Although the Government has not made any statements about the content of the new law, international interest in the Turkish wind market remains high: total applications reached an impressive 80 GW. Furthermore, the Turkish Energy Minister, Taner Yýldýz, recently declared that his government intends to establish a 2020 target for wind of 20 GW.

Furthermore, it has been announced that the Turkish electricity system operator, TEIAS, plans to conduct a tender process for awarding new grid connections. The tender will adjudicate licences to wind energy developers that are prepared to accept a higher discount on the feed-in tariff (and fulfil all other conditions). The sector however, reports that the feed-in tariff for wind is already as low as it can be and that no developers will be prepared to accept a discount.

During the last few months, TEIAS has encouraged the formation of wind development consortiums with the specific aim of getting developers to present joint applications and improve the offers they present in future tender processes. This process, which is still underway, has reduced the number of grid connection applications for from 80 GW to less than 30 GW.

For additional information:

TEIAS


Reference: http://www.renewableenergymagazine.com/paginas/Contenidosecciones.asp?ID=9&Cod=4763&Tipo=&Nombre=Wind

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