Reasons of Non-Bankability of Wind & Solar YEKA Projects in Turkey

Turkey has experienced a significant development in renewable energy installed capacity during the last decade. However, there has been no renewable energy capacity addition with the new auction scheme namely Renewable Energy Resource Areas (‘RERA’ or ‘YEKA’). Accessing financial sources is a key to successful development of new renewable energy capacities. Performing a comparative study on global auction-based renewable energy development & Turkey case, the article proves to point out some reasons for non-bankability supported by a survey study with sector professionals. 

Looking into the global auction-based renewable energy source development; in the 2017-2018 period, around 50 countries used auctions to procure renewables-based electricity, raising the number of countries that have ever held an auction for renewables to 100 by 2019 (REN21, 2004 – 2019). Almost half of the 50 countries had no previous experience with auctions (herein referred to as newcomers); they were likely driven by the reported success of auctions in other markets in attaining low prices. The use of auctions continues to rise, owing chiefly to their ability to reveal competitive prices and the flexibility in their design and their susceptibility to be tailored to fit country-specific conditions and objectives.

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