Turkey’s onshore wind potential is estimated to be 53,000 MW (by Ministry of Energy and Natural Resources “MENR”), however it uses less than 1% of its potential capacity. Beside the potential, Turkey has substantial space, a reasonably good electrical infrastructure and an approaching shortage of electricity as enablers for a wind farm investment.
MAJOR RULES & REGULATIONS
Renewable energy law, enacted in 2005, which had amendments in 2007 & 2008 regarding feedin tariffs, stipulates a purchase obligation by the retail companies for 10 years with a purchase price between 5 and 5.5 EURcent/kWh. A draft amendment is currently being processed at the legislative body for increasing the purchase price to 8 EURcent/kWh. Application for a license: –In November 1st, 2007, EMRA received 751 applications with total installed capacity of 77,871 MW –There is a high uncertainty on when and how the applications will be reviewed/granted –As a result of the uncertainty on existing applications, EMRA doesn’t accept any new license application currently. However, if there are no applications from a certain area and there is capacity at the grid, EPDK will start to accept new license applications. Before Nov 1st, 2007, the process of application approval and development was according to the following:
–EMRA reviewed and granted a license within 12 months of applying
–Upon the issuance of the license, EMRA allows license holders to have 16 months for development of the site and finalizing all the permits/certifications so that the site is ready for construction.
–Once a turbine order has been placed and construction starts, EMRA allows license holders to have 24 months to complete the construction and have the turbines delivered.