JESDER Chair shares thoughts on the new YEKDEM scheme in Türkiye

Ufuk Sentürk, Chairman of the Board of JESDER

The YEKDEM update for electricity generation based on renewable energy sources in Türkiye, which the industry has been eagerly waiting for, was announced on May 1, 2023. On behalf of the Geothermal Power Plant Investors Association (JESDER), the Chairman of the Board, Ufuk Sentürk, announced his thoughts and views on the new YEKDEM through a press release:

“The YEKDEM update, which we have been working on for a long time with relevant institutions and investors, and which we expected to take place, entered into force on May 1, 2023, after it was published in the Official Gazette. While determining the prices and periods to be applied for electricity generation facilities based on renewable energy sources with RES certificate, which will start/will be commissioned from 1 July 2021 until 31 December 2030, according to the decision; While Turkish Lira will be valid for the application price in the support part, monthly dollar indexed updates will be made and escalation process will be applied by adopting the floor and ceiling price principles in payments. In addition, no price difference will be paid for the facilities that have been operational since July 1, 2021.

According to the decision made, the fixed price purchase period to be applied for geothermal power plants, which are among the power plants with high investment costs, will be 15 years, and the application period for domestic contribution margin additional price will be 5 years. With the regulation, the longest support period was given to geothermal power plants and pumped storage to hydroelectric power plants.

According to the update, the support payment for GPPs will be 202 Kurus per KWh, the base price will be 9.45 Cent/KWh and the ceiling price will be 11.55 Cent/KWh in purchase prices. The domestic contribution will be applied as 28.80 Kurus/KWh for GPPs. Thanks to long-term support, GPPs will also have the opportunity to provide long-term financing.

In recent years, due to the support given on TL basis, investments in geothermal power plants, which have a very high investment cost, came out of the appropriate feasibility conditions. It became difficult to supply our power plant equipment from abroad and we started to encounter economic difficulties in the use of domestic equipment. For this reason, we could not reach our year-end targets in installed power, and could not use the energy to be obtained from the power plants at an efficient level.

This update was necessary to change the practice and increase investments by generating more active electricity from renewable energy plants. As investors, we are happy to state that we are pleased with this decision and that our investments can continue rapidly. We are proud to see that our efforts yield results, that the investor is supported and that renewable energy is more equitably supported. We would like to thank everyone who contributed to the study.”

Source: JESDER Press Release via our Turkish language platform JeotermalHaberler