New Developments on the Upcoming Off-shore Wind Energy Tender

On 23 March 2018, the General Directorate of Renewable Energy (“DGRE”) announced the designation of new potential Renewable Energy Source Areas (“RE-ZONEs”) for the upcoming tenders in 2018.

According to the announcement, i) Saros, ii) Gelibolu, and iii) Kıyıköy (all located in Northwestern Turkey) have been designated as potential RE-ZONEs for Turkey’s first off-shore wind energy project.

In furtherance to the designation, the tender announcement for the first off-shore wind energy project (the “Project”) was published in the Official Gazette dated 21 June 2018 and numbered 30455. The essential points of the Project are set out in this note.

Nature, type and amount

The successful bidder will have the rights to construct off-shore wind energy power plants in designated zones with an aggregate installed capacity of 1200 MWe. 

Please see Annex 1 for more detailed information as to these potential RE-ZONEs designated by the DGRE.

Initial price and electricity purchase period

The tender will be carried out by way of the Dutch auction method and the initial bidding price will be USD 8.00 cent / kWh. The electricity energy purchase period will begin from provisional acceptance of the power plants and end when the first 50 TWh of electricity has been delivered to the system.

Eligibility to participate in the tender

Companies, joint ventures and consortia are eligible to participate to the tender. Other requirements are set out in the tender specifications.

The tender specifications

Interested companies can obtain the tender specifications in consideration for TL20,000 (approximately EUR 3,500). The tender documentation can be obtained from the DGRE.

Bidding deadline

The bidding deadline for the tender is 23 October 2018. Note that the Ministry of Natural Resources and Energy is entitled to postpone the bidding deadline or cancel the tender.

Bid bound type and amount

Bidding entities are required to submit a bid bond in the amount of USD20 million. The bid bond must be final, for a term of not less than one year, be unlimited and eligible to be cashed in partially. Following the tender, the successful bidder will be required to submit another bid bond in the amount of USD100 million.

Conclusion

Off-shore wind farms are in the spotlight worldwide because they operate at higher efficiency levels compared to on-shore wind farms. Given the fact that Turkey has huge off-shore wind energy potential, the first off-shore tender to be held this year will be an important step to tap into this potential and contribute to Turkey’s energy supply security and its continuing efforts to utilise renewable resources more efficiently.

Authors:

Aykut Bakırcı

Zekican Samlı

Duru İyem