Still favorable investment conditions for unlicensed photovoltaic plants in Turkey

Still favorable investment conditions for unlicensed photovoltaic plants in Turkey

The high solar irradiation and the high feed-in tariffs make investments in unlicensed photovoltaic plants in Turkey very attractive. The unlicensed market segment has the advantage that photovoltaic projects under 1 MW can be easily developed and connected to the grid compared to licensed solar projects in the country. Now the prevailing majority of cumulative installed photovoltaic system capacity in Turkey is belonging to unlicensed solar installations.

High feed-in tariffs and low amortization periods for unlicensed photovoltaic plants in Turkey

The decision of the Turkish government from October 2013 to increase the eligibility criteria for feed-in tariffs (FIT) by unlicensed photovoltaic projects (pv projeleri) from capacity of up to 500 KW to capacity of up to 1 MW, and to remove any size limits about solar power generation for self-consumption purposes resulted in aggressive investments in the “unlicensed market segment”. In order to avoid the lengthy permission process for licensed solar systems it has become business practice subdividing larger PV systems into smaller legally and technically separate units. Usually these are photovoltaicsystems of up to 10 MW installed capacity. In addition, bigger sized pv-plants of 40 MW are planned.

One example is the 1.4 MW photovoltaic system on top of the Antalya Stadium, which has been divided into two 700 kilowatt solar units. The solar plant with a total cost of 1.3 million Euro will be amortized within 6 years only. This is because the feed-in tariff for the power generated by the photovoltaic system stands now at USD cents 13.3 per kWh for a period of 10 years. Additional incentives are payed for the inclusion of local components.

High investment demand for unlicensed photovoltaic plants in Turkey

Until now, the cumulative installed capacity of PV-systems is still low amounting to 200 MW at the end of 2015. However, the demand in the unlicensed market segment for solar plants up to 1 MW is high. Currently, there are about 5 GW approved pre-applications for admission for this market segment. According to companies’ statements, the project pipeline for the coming months is tight. Several larger scale unlicensed photovoltaic projects will be built in the industrial area Incesu in the city Kayseri in Central Anatolia.

At the 26. November 2015, the Energy Market Regulation Authority of the Republic of Turkey (EPDK) has published a modification draft for unlicensed photovoltaic plants in Turkey. Most probably solar projects that manage to secure a call letter before the commencement of the act will not be affected.

Source :

Renewable Market Watch, pv-magazine, www.anwalt.de

Photo Credit: Shawn Hempel/shutterstock

 

 

Christiane Golling

Christiane Golling, 35, Key Account Manager bei Milk the Sun. >>The dynamic energy transition and the resulting emerging & innovative market opportunities are fascinating to me. Photovoltaic will be - and already is - one key technology.>>