Turkish geothermal sector sees further development opportunities
With supporting regulation and better scope of supporting mechanism, Turkish geothermal sector sees an opportunity for additional 2,000 MW in development.
In an interview with Anadolu Agency, Ali Kindap, President of the Geothermal Energy Association (JED) points to the great contribution of the geothermal sector and the fast development shown in the past in Turkey.
With a development of 200-300 MW per year, the current situation though does not see much development. With an installed power generation capacity of about 1,670 MW, the Turkish geothermal sector was the fastest growing geothermal market in the past few years.
But with current challenges, a lot of Turkish companies increasingly serve foreign markets. The challenge at the moment, so Ali Kindap, is the scope of the renewable energy resources support mechanism (YEKDEM). In the new period, prices have decreased by 30% and the quarterly implementation of foreign exchange-indexed escalation formula in YEKDEM, supported in Turkish lira, affects investment. JED is asking for the FX-indexed price escalation to be done on a monthly basis, so Anadolu.
At the same time, the rising commodity prices also increase costs for development, and for geothermal those increases are about 70%.
Ali Kindap states a potential of additional 2,000 MW, which could be realised if issues related to price and time are resolved.
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Source: Anadolu Agency