German juwi group to develop 18 unlicensed PV projects in Turkey

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The renewable energies contractor is expanding further into one of the world’s growing solar markets at an exciting time. The 18 projects will fall under the new regulation for unlicensed solar in the country, which is defined as any PV installation with a capacity less than 1MW.

The deal, which was finalized at the Solarex trade show in Istanbul, is between juwi group and Turkish Koyuncu Group, who will be supplying $23.5 million of investment for the projects. The projects will have a combined capacity of 18.6 MW, and construction is to begin soon.

“Half of the 18 projects will be installed in Konya and the other half will be installed in Nev?ehir,” said Ibrahim Koyuncu, CEO of the Koyuncu Group. “We will start constructions in summer and aim to commission all plants by the end of 2016.”

It is just the latest of juwi’s projects in Turkey, where the company has been operating since 2014, and is now considered a reliable foreign EPC contractor. One of its most recent projects completed in Turkey was a 7.4 MW solar plant in Denizli at the end of 2015.

“We are pleased to build the solar parks for the Koyuncu Group,” said Turkey general manager for juwi Korhan Gö?ü?. “The Turkish energy market offers great potential for renewables and we are just at the beginning of a long road, in particular with regard to the country’s COP21 target (United Nations Framework Convention on Climate Change, 21st Conference of the Parties) for solar energy.”

High hopes for Turkish PV

There is a buzz around the potential for solar in Turkey. The country has set a target of 5 GW of solar PV capacity by 2023, which begins with a goal of 1 GW installed by the end of 2016. According to juwi, markets analysts estimate the size of the market to be a bulky $10bn, which foreign companies are competing to be part of.

Turkey doesn’t want to rely solely on outside companies for the installations of the plants, or for the manufacturing of the materials. As a signal of intent, Turkish company Marsan Marmara Holding recently announced the development of a new solar panel manufacturing facility in Turkey, which it hopes will have a 1 GW production capacity in the next four years. Additionally, the government introduced a premium on the feed-in tariff that PV projects can enjoy, should they use products manufactured in Turkey.

However, despite the positive developments in the Turkish market, some new regulations are more of a hindrance to its progress, including an import tax of around $125 on solar modules that are manufactured outside of Turkey. Additionally, the government introduced slightly more restrictive measures regarding its unlicensed PV market, which cover the development of the projects and the issuing of them.