Hope for extension of geothermal feed-in-tariffs in Turkey beyond 2020

Germencik 2 (Effe 3) Geothermal Power Plant, Turkey (source: Ormat Technologies)
Alexander Richter 13 Sep 2020

New indications give hope that the Turkish government might extend the YEKDEM support mechanism providing favourable feed-in-tariffs for geothermal and other renewables.

Turkey’s Renewable Energy Resources Support Mechanism, known as YEKDEM, was commissioned to make renewable energy sources more attractive for investors who will invest in the field of renewable energy.

With the luring run out of the tariffs at the end of the year, there is now renewed hope of an extension. There are indications of a possible extension of YEKDEM for 6 months.

The kilowatt-hour of electricity generated by the power plants utilizing YEKDEM was guaranteed USD 0.073/ kWh for wind and hydroelectricity, USD 0.105/ kWh for geothermal, USD 0.133/ kWh for biomass and solar. The mechanism that reached its goal and resulted in rapidly increasing installed power capacities. However, YEKDEM is scheduled to end on December 31, 2020.

The Ministry announced that it is studying a new model regarding the mechanism that all renewable energy sector stakeholders requested to be extended. The new mechanism was expected to be announced for now already about two years.

According to the news of HaberTürk, it is spoken at the backstage that the support mechanism is planned to be continued as it is now, and will be valid for 6 months from January 2021. The decision is expected to be published in the Official Gazette in a short period of time.

In addition to the extension news, it is known that the regulation work regarding YEKDEM continues. In the report, it is said that incentives will be determined on “TL” instead of “US Dollars” within the new model. The procedures and principles for updating prices will be determined by the President of the Republic.

Source: JeotermalHaberler – our Turkish language service