Briefly, the Renewable Energy Resource Area ("RERA") aims to create large scale renewable energy resource sites in state and treasury owned properties and within privately owned properties in order to use renewable energy resources effectively and efficiently. As a general procedure, the Ministry of Energy and Natural Resources ("MENR") and the General Directorate for Renewable Energy ("GDRE") determines in coordination with Turkish Electricity Transmission Joint Stock Company the potential of the solar and wind energy resource areas which will be subject to large scale renewable energy investments.
Following the designation of such areas, a tender announcement is made in the official gazette and the web site of the GRDE. Under the tender announcement, the following are indicated:
The purchase term, the price for such purchase of the electricity, the date of the tender, the installed capacity of the wind or solar power plant and the undertaking in relation to construction of the factory, which will produce local equipment in the renewable power plant, or usage of local equipment with a specific ratio.
In this respect, the Renewable Energy Resource Areas Regulation, published in the Official Gazette dated 9 October 2016 and numbered 29852, will oblige the state to purchase, for a certain period, electricity produced from the renewable energy resources within the scope of the Renewable Energy Resource Areas Regulation. Please find below general information in relation to the RERA:
a. tender specification can include an undertaking in relation to the construction of the factory which will produce equipment in the renewable power plant and the usage of local equipment with a specific ratio;
b. the ceiling price and purchase term are indicated under the tender specification and the final price which will be applicable during the purchase term will be determined due to provided bids by the bidders;
c. the purchase obligation starts from the signing date of RERA Usage Right Agreement;
d. price escalation is not possible;
e. the term of the RERA Usage Right Agreement will be subject to the total term (including purchase term) under the tender specification;
f. failure to construct the factory or use necessary local equipment results in the cancellation of the RERA Usage Right Agreement and preliminary license and prohibition from participating in RERA tenders for two (2) years for direct and indirect shareholders of the bidder;
g. construction of the factory is finalised within the period of preliminary license;
h. no local production incentive is applicable;
i. preliminary license is issued for thirty six (36) months at most;
j. the feed in tariffs defined for renewable energy resources are not applicable during the purchase term and after the expiry date of the purchase term; and
k. the electricity generation license is issued for thirty (30) years.
Please find below a chart which indicates the procedure under the Renewable Energy Resource Areas Regulation:
Click here to view table.
Recently, an announcement was published in the Official Gazette dated 13 April 2017 and numbered 30037 on an upcoming tender for the development of wind farm(s) with a total capacity of 1,000 MWe on renewable energy resource areas (to be designated within the connection region specified in a non-disclosed tender specification document). Potential bidders are required to submit their offers by noon on 27 July 2017.
Based on the announcement on a tender for the development of wind farm(s) with a total capacity of 1,000 MWe, please note that:
a. the winning bidder will benefit from a 15-year purchase guarantee (which starts from the signing date of RERA Usage Right Agreement);
b. the ceiling price is set as USD 7 cent/kWh;
c. the factory is required to be constructed and operational within twenty one (21) months following the execution of RERA Usage Right Agreement;
d. the wind turbine components manufactured in the factory will be used in the wind power plants at a 65% domestic production ratio;
e. the research and development centre is required to be constructed and operated with a certain budget as foreseen under the tender specification;
f. the connection capacity limits for the regions where the wind farm(s) with a total capacity of 1,000 MWe will be built are indicated under the tender specification;
g. the bidders will be required to submit a bank guarantee to an amount of USD 10 million to the administration at the application date; and
h. the potential bidders are required to submit their bids until noon on 27th July 2017 (if there is no postponement).