/18th September 2014, RENEWABLE MARKET WATCHTM/ With its booming economy and growing energy demand, Turkey is one of the most promising emerging markets for photovoltaic energy investments amongst SEE countries. This growing energy demand and the high electricity prices are the main drivers, which will support the growth of Turkish solar PV market.
With its booming economy and growing energy demand, Turkey is one of the most promising emerging markets for photovoltaic energy investments amongst SEE countries. This growing energy demand and the high electricity prices are the main drivers, which will support the growth of Turkish solar PV market. At the middle of July 2014, Turkey reported all-time record for electricity consumption. According to Energy Minister Taner Yıldız, instant peak demand exceeded 39,088 MW.
The Turkish feed-in tariff for photovoltaic was increased in 2010 and now stands at USD cents 13.3 per kWh. The government offers additional incentives for local procurement if there is a domestic component in the manufacture of the photovoltaic equipment. Local involvement can increase the tariff with additional 6.7 USD cents per kWh, which will result in total USD cents 20 per kWh. Local procurement incentives apply for the first five years of operation of the photovoltaic power plants.
According to some experts to meet the growing demand for electricity (of 5% per year), the country would need new power plants with a capacity of over 30 GW by 2023, while also replacing at the same time depreciated and ageing power plants with a generation capacity of approximately 20 GW.
At the end of May 2014, The World Bank has approved $300 million financing line from the International Bank for Reconstruction and Development (IBRD) and $50 million from the Clean Technology Fund (CTF) for renewable energy projects in Turkey, which is equal to total $350 dedicated for renewable energy financing.
We expect by 2018 solar PV market in Turkey to double its installed capacity each year as the growth by 2016 will be underpinned mostly by unlicensed PV market segment, whilst between 2016 and 2018 licensed market segment will also gain momentum. The solar PV market in Turkey will grow in the next years by the five main reasons:
1) the growing energy needs of the Turkish economy and industry;
2) quickly growing electricity prices for businesses and households;
3) grid parity with electricity cost for households and businesses in Southern parts of Turkey;
4) growing population of Turkey, which will result in more energy consumption in the next 20 years;
5) excellent opportunities existing in non-licensed PV market segment, which enables photovoltaic installations below 1 MW with simplified permitting procedures.
More information about this promising market you may read here: Turkey Photovoltaic Market Outlook 2014 - 2025