Turkey: small-scale solar rules released

14. October 2013 | Applications & Installations, Global PV markets, Industry & Suppliers, Investor news, Markets & Trends, Top News | By:  Max Hall

By doubling the size of projects for which FITs are available, the Turkish government has finally fired the starting gun on solar. 'We have been waiting five years for this.' says Enerparc's Ertug Babatas.

The flag of Turkey.

The Turkish government has – finally – fired the starting gun on solar.

The Turkish government's decision to double the FIT payment eligibility of small scale PV installations up to 1 MW, and to remove any size limits for self-consumption projects, will fire solar demand that has been pent up for five years, said one industry representative.

Ertug Babatas, Turkey business development manager for Hamburg-based Enerparc, told pv magazine: "I feel that this is the moment we've been waiting five years for."

The government will pay a FIT for small scale solar installations – known as unlicenced schemes – of US$0.133/kWh under ten-year PPAs with Babatas explaining the shorter term of the FIT deals, usually 20-25 years, was down to the conservative nature of the Turkish government.

"It's difficult to work out how much the energy price will be in ten years and we could see that already in ten years this FIT is a good price," added Babatas.

Despite the complaints that have been lodged against domestic content requirements around the world, the Turkish state has chosen to incorporate a bonus adder rate to the FIT for unlicenced installations which incorporate Turkish-manufactured components.

The benefits of being outside the EU

"Because we are not in the EU," said Babatas, "it is easy for Chinese manufacturers to set up production in Turkey and we are already seeing that."

The industry in Turkey is now expecting the government to issue the tender for licenced installations larger than 1 MW in size.

Having previously announced a capacity limit of 600 MW for the Turkish grid, applications amounted to 9 GW, bringing a swift halt to the process but Babatas expects that obstacle to be overcome soon.

"I think now the government is understanding the demand for solar in the country, we will see it hold the tender for licenced schemes before the end of the year," he added.

"I am hearing our partners in Turkey are facing huge demand for projects and companies across the country with rooftop space are taking the chance to establish power plants."

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James Wimberley

Monday, 14.10.2013 17:24

¨Having previously announced a capacity limit of 600 MW for the Turkish grid, applications amounted to 9 GW ...¨ A similar story in Brazil. One advantage of tender or auction mechanisms is discovery for policymakers. Fast-growing middle-income countries tend to have severe grid constraints, but the discovery of massive potential supply of solar generation at current prices should prompt a reassessment of priorities.

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