Turkey’s government has approved a decree issuing new feed-in tariffs (FIT) for wind and other renewable energy sources, in a move that is expected to help alleviate problems with financing.

The Turkish authorities have set a 10-year feed-in tariff (FIT) of TRY 1.06 ($0.0545)/kWh for PV systems that are installed between July 1, 2021, and December 31, 2030. Solar projects with Turkish PV components will be given an additional five-year tariff of TRY 0.2880/kWh.

Turkey announces new tariffs under its renewable energy feed-in-tariff scheme YEKDEM. With that the tariffs for geothermal drop by around 36%, expectations were clearly higher.

Turkey is seeking to become a manufacturing hub for the renewable-energy industry by implementing the world’s strictest rules on local content.

The legislation includes a differentiated feed-in tariff scheme for different types that eventually provide the investors with predictable returns on their investment. The guaranteed prices are applicable for ten years after commissioning.

These installations have been bolstered by the feed-in tariff introduced by the Turkish government in 2010, offering all power plants built between 2005 and 2015 a fixed energy sale price for 10 years.

The delegation further delved into the benefits of locally producing PV modules and the financing of PV projects in light of the Turkish economic minister gearing to award feed-in tariff (FiT) licenses to 28 large solar PV projects this year.

Under the current setup, companies with end consumers make a monthly contribution towards the feed-in tariff which is set in US dollars and paid in Turkish lira at the exchange rate on the day of settlement.

The plan admits, raising the possibility adjust the FIT depending on the level of penetration of a renewable energy technology.

The new tariffs include the following rates of feed in tariffs for the renewable energy resources; USD$ 7.3 cent for the hydroelectricity, USD$ 7.3 cent for the wind, USD$ 10.5 cent for the geo-thermal, USD$ 13.3 cent for the biomass and USD$ 13.3 cent for the solar energy production. For the holders of the renewable energy license facilities which had obtained their licenses before December 31, 2015 the aforementioned tariffs will be in place for 10 years.