The support mechanism for geothermal in Turkey – an evaluation by operator association JESDER

Özmen-3 Geothermal Power Plant, Manisa, Turkey (source: EGESIM)
Alexander Richter 16 Oct 2020

In his speech at a recent conference, the Chairman of the Turkish Geothermal Power Plant Investors Association (JESDER) Ufuk ?entürk shared his views on the importance of continuing the support mechanism in order to increase geothermal investments and the work of the TBMM Energy sub-committee.

Joining the 26th International Energy and Environment Fair (ICCI) this year, JESDER (Geothermal Power Plant Investors Association) Chairman Ufuk Sentürk evaluated the importance of the support mechanism for the geothermal sector and the work of the energy commission in his speech.

According to Sentürk’s speech, the YEKDEM mechanism, which will actually expire on June 30, 2021, was reconsidered in the works of the TBMM Energy sub-commission, where the Electricity Market Law and drafted regulation are evaluated by the stakeholders joined the Energy Sub-commission.

The draft regulation is expected to come to the agenda of the parliament to be enacted in the coming days. In case of enactment, the YEKDEM mechanism is expected to continue in TL, with the amount of YEKDEM to be determined by the President.

Sentürk reminded in his speech that it is important how the escalation of the YEKDEM mechanism will be. He stated that the desire of the geothermal power plant (GPP) investors is that the support mechanism is indexed to foreign currency or if the increase in foreign currency is above or below 1%, the price is escalated in monthly periods.

In addition, Sentürk underlined the necessity of restructuring the mechanism to support domestic components within the scope of YEKDEM in order to obtain maximum benefit from geothermal, and also touched on the direct use of geothermal resources.

In the continuation of GPPs, in the case of Greenhouse-City heating, drying, tourism investments, which are called as secondary investments (cascade systems), it is predicted that these investments will increase and benefit from geothermal in terms of heat and energy will be maximized by adding an additional item to the domestic equipment support.

Referring to the 1% administration share, which was also discussed in the energy sub-commission works, Sentürk said: “The distribution of the administration share to local governments should be a little more generous and 1% of the administrative share should be transferred to local governments, this amount is 8 Billion TL / Year. With the transfer of 4 billion USD, local reactions will decrease, investments will increase and accelerate.”

Reminding that in order to increase the geothermal investments, the soil law numbered 5403 and the improvement of olive cultivation should be reorganized for domestic and national energy resources, JESDER Board Chairman said, “Geothermal resources are resources that should be evaluated on site”.

Sentürk said the following regarding the United Power Plants (Hybrid) regulation, which was recently added to the legislation: “The hybrid regulation could not gain functionality and remained obsolete due to these laws and the problems experienced. It should be used for Hybrid facilities in areas that are not suitable for agriculture within the geothermal license areas, and it should be aimed to meet the internal consumption with the power to be produced in the Hybrid investments to be made, because the energy produced from SPPs (solar power plants) is 20% of the installed power. ”

Source: our Turkish site JeotermalHaberler