Turkish Offshore Wind: Current Status And Outlook

1. Introduction

Turkiye current total installed capacity is approx. 106 GW of which wind power has a share of 10%. Wind installed capacity has reached approximately 13 MW at the end of January 2024. In terms of onshore wind power, it is a mature market and many experienced contactors can be found within Turkiye for transport, installation, civil scope, etc. The local production of wind turbine components is promoted through the provision of a surplus additional feed-in rate for the wind farm operator. Turbine manufacturers without local manufacturing must overcome this disadvantage with price discounts on the turbine price. The Ministry of Energy and Natural Resources has published the National Energy Plan of Turkiye covering the period 2020-2035. In the scenario prepared by the Ministry, in the period 2020 – 2035, primary energy consumption will reach 205.3 Mtep (Million tons of oil equivalent), electricity consumption will reach 510.4 TWh (Terawatt Hours), while the electricity installed capacity will reach 189.7 GW in total. Offshore wind target is 5 GW till 2035. World Bank report concluded that Turkiye has nearly 75 gigawatts (GW) of technical potential for offshore wind. The report detailed Turkiye’s technical potential for offshore wind. The most attractive areas for offshore wind lie in the northwest in the Aegean Sea where wind speeds rise to 9 meters per second (m/s) the report said. The “Offshore Wind Energy Turkey Roadmap” Report, in which Turkey’s offshore wind energy potential is analyzed and the road map to be followed for the development of this field is stated, was shared with the sector by Turkish Offshore Wind Energy Association (DURED). Moreover, the “Offshore Wind Energy Sector Inventory” Report, which involves all stakeholders of offshore wind energy in Türkiye, was also presented.

2. Offshore Wind Power in Turkiye

There are numerous studies related to offshore wind power potential of the country. Amongst, World Bank Group report mentioning that Turkiye has nearly 75 gigawatts (GW) of technical potential for offshore wind. The report also detailed Turkiye’s technical potential for offshore wind. “The most attractive areas for offshore wind lie in the northwest in the Aegean Sea where wind speeds rise to 9 meters per second (m/s),” the report said.

Postponed 1200 MW Offshore Wind Farm Tender

Turkiye has begun a new chapter in its long-term policy on renewable energy with the Regulation on Renewable Energy Resource Areas (“RERA”), which came in force in October 2016. RERA establishes another set of incentives designed to encourage the effective and efficient use of renewable energy resources on state- and treasury-owned as well as privately owned sites in Turkiye. A central plank of the policy on renewables is the recently announced RERA Offshore Wind Power Farm project – Turkiye’s first and the world’s largest offshore wind farm, which is expected to yield investment of USD 3 billion. The wind farm should start generating electricity in 2023 – coinciding with the 100-year jubilee of the Republic of Turkiye – with a total capacity of 1,200 MW.

General Information on Postponed Tender

The tender announcement for the RERA Offshore Wind Power Farm was published in the Official Gazette in Turkiye on June 21, 2018. Saros (Edirne-Enez, Keşan), Kıyıköy (Kırklareli-Vize) and Gelibolu-Şarköy (Çanakkale-Tekirdağ) are among the nominee regions for the project. See figure below on 100m wind power potential atlas with circles.

Figure 1. Offshore wind farm postponed tender locations.

Postponed Offshore Tender Details

The investors contracted for the project will establish the offshore wind power plant by choosing either two (2) of the listed areas or two (2) other areas it has selected itself, provided it carries out the necessary measurements and surveys. The investor must first start work on an 840-MW power plant and then continue with the remaining part to reach a total of 1,200 MW. The investors will be able to use the remaining capacity as long as they:

•notify the Ministry of Energy and Natural Resources, General Directorate of Renewable Energy in writing within forty-two (42) months following the signing of the agreement;

•complete the installation within seventy-two (72) months.

Postponed Tender Qualifications

As for the tender qualifications, legal entities or partnerships formed from multiple legal entities or consortia are allowed to apply for the tender. In order to obtain the tender specifications, groups must pay twenty thousand Turkish Lira (app. EUR 3,700). The amount has to be deposited in the bank account determined in the Official Gazette.

In addition, a partially or completely cash convertible definite letter of guarantee of one (1) year amounting USD 20,000,000 should also be submitted to the Administration.

The winning party will be obliged to submit a letter of guarantee of ten (10) years amounting to USD 100,000,000 to the Administration prior to the execution of the energy sales agreement.

The Official Gazette indicates that the ceiling price for electricity produced at the country’s first offshore wind farm will be set at US Cent 8 (eight)/KWh and that the tender will be carried out through an auction by underbidding. The investor who submits the lowest bid will execute an agreement, including the first 50 TWh of electricity production starting from the temporary admission.

The tender location, date and time will be announced by the Administration.

3. Outlook for Offshore Wind Power Market in Turkiye

Based on Turkiye’s success in onshore wind, the Turkish Government announced plans in early 2018 to expand into offshore wind which is postponed. Offshore wind is experiencing global and increasing pressure to deliver energy at lower and lower costs. At the same time, the countries where the wind farms are being installed are increasingly aiming to profit from the manufacturing and installation of the wind farms, as well as the lower energy cost. In 2022, it is expected that 1500 MW capacity tender to be announced by Energy Ministry.

National Energy Plan of Turkiye

The Ministry of Energy and Natural Resources has published the National Energy Plan of Turkiye covering the period 2020-2035. In the scenario prepared by the Ministry, in the period 2020 – 2035, primary energy consumption will reach 205.3 Mtep (Million tons of oil equivalent), electricity consumption will reach 510.4 TWh (Terawatt Hours), while the electricity installed capacity will reach 189.7 GW in total.

Installed power planning in the field of energy for 2035

Wind energy: 24.6 GW onshore + 5 GW offshore total 29.6 GW

Solar energy: 52.9 GW

Hydroelectric power: 35.1 GW

Other renewable energy: 5.1 GW

Nuclear power: 7.2 GW

Conventional sources: 59.8 GW

Electrolyzer capacity: 5 GW

4. Power Purchase Tariff for Offshore Wind

The Turkish Republic Presidency has published a decree (Decree no. 7189) dated May 1, 2023 and announced new 10-year feed-in tariffs and 5-year domestic production incentives for renewable power projects commissioned between 1 July 2021 and 31 December 2030 under the new renewable energy support mechanism (YEKDEM). The feed-in tariff levels are determined in Turkish lira and will be subject to a quarterly escalation mechanism, based on the producer price index, consumer price index, US dollars purchase rates and euro purchase rates; FiTs in US dollars will be subject to a cap.

5. MetOcean and Wind Measurement Site Investigation in Türkiye

The Ministry of Energy and Natural Resources (MENR) has received a grant from the European Union toward the cost of the EU Instrument for Pre-Accession (IPA) Energy Sector Program Phase IV Project, and intends to apply part of the proceeds for Consulting Services. The Consulting Services (“the Services”) include the conduction of meteorological and oceanographic analysis and measurements at specific offshore sites to be selected by MENR. The studies include:

1. Analysis, measurement and survey activities informed through the application of meteorological and oceanographic measurement systems,

2. Acquirement of high-quality and reliable meteorological and oceanographic data,

3. Preparation of meteorological and oceanographic measurement system application and data analysis reports,

4. Preparation of geological, geophysical and geotechnical seabed survey reports and assessment of all survey outputs, and other relevant activities. (Geological, geophysical and geotechnical measurements will be carried out under a separate contract while the data obtained from the relevant measurements will be assessed under this assignment.)

IPA Sites selected in Marmara Sea. 

3 companies already did bid for the MetOcean Tender and the process is pending.

Figure 2. IPA Sites selected by the MENR.

6. Environment and Social Commitment Plan for Offshore Wind Support Project

The Republic of Türkiye (the Recipient) will implement the EU Instrument for Pre-Accession (IPA) Energy Sector Program Phase IV– Offshore Wind Support Project (the Project), through the Ministry of Energy and Natural Resources (MENR). The International Bank for Reconstruction and Development (the Bank), acting as administrator of the European Union Instrument for Pre-Accession Trust Fund, has agreed to provide financing for the Project, as set out in the referred agreement. The Recipient through MENR shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Bank. The ESCP is a part of the Grant Agreement. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESSs, and in form and substance, and in a manner acceptable to the Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Bank. As agreed by the Bank and the Recipient, through MENR, this ESCP shall be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient, through the MENR, and the Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Recipient, through MENR. The Recipient, through MENR shall promptly disclose the updated ESCP. This has been already awarded by RPS Global Inc.

7. RERA Offshore Wind Project Sites

Within the scope of the Renewable Energy Resource Zone (REZ) Regulation; Ministry of Energy and Natural Resources announced four Offshore WPP Candidate REZ.

Figure 3. RERA Offshore wind project sites selected by the MENR.

References: Turkish Offshore Wind Energy Association, Denizüstü Rüzgar Enerjisi Derneği (DÜRED). www.linkedin.com/company/dured-towea/