Current covid-19 situation effecting Turkey and slow down geothermal development

Current covid-19 situation effecting Turkey and slow down geothermal development EXERGY’s Akca plant, Turkey (Courtesy of EXERGY)
Alexander Richter 23 Mar 2020

Turkey will see the delay of new geothermal power plants that were planned to come online in 2020 due to the impact of the covid-19 situation to the supply chain and construction of the plants. The industry is therefore asking for an extension of the support mechanisms that run out at the end of 2020.

As reported by our Turkish-language service, JeotermalHaberler, the covid-19 situation will effect the Turkish geothermal sector and there are voices asking for a postponement of the support mechanisms in place supporting development.

With the global impact of the virus, the impact can also be felt by Turkey, according to Ufuk Sentürk, President of the Turkish Geothermal Operator Association JESDER, stating that “this … it will negatively affect the new power plants planned to be in operation by the end of 2020.”

Along with the economies of the countries, geothermal energy producers and investors were added to the sectors affected by the coronavirus, which affect many sectors. The members of the Geothermal Power Plant Investors Association (JESDER), which produced 8,000 GWh as of the end of 2019, shared the force majeure effect and concerns related to the new GPPs envisaged until the end of 2020.

JESDER President Ufuk ?entürk said, “The measures taken in our suppliers channel were implemented with the announcement of the coronavirus as a pandemic by the World Health Organization. As geothermal electricity producers, we supply what we need under many headings from China and European countries. Delays continue to increase in our global supply chain, due to the measures implemented to prevent the spread of coronavirus both from them and in their countries. ”

Stating that the projects that are planned to be implemented at the beginning of the year and whose works are currently underway have come to a halt and this process will affect 7 new GPPs, Sentürk said, “Our foreign and domestic suppliers have postponed their machine and material supply periods to an uncertain date.”

The power plants, whose works have been started, have to be put into operation last December 2020. Due to this force majeure, we think that the power plants will face challenges especially due to the investment financing, feasibility and failure to be commissioned. We believe that the “force majeure” situation in the “License Regulation” should be accepted and the determined date should be postponed. The “force majeure” decision to be taken will meet the renewable energy targets of our country and will be a positive step for our sector and our country’s economy ”.

Source: JeotermalHaberler via Sanayi Gazetesi