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Turkey to be the 5th country to increase its renewable energy capacity the most in Europe: International Energy Agency

According to the Renewable Energy Report of the International Energy Agency (IEA), Turkey’s renewable energy capacity reached 44.6 gigawatts. 28.5 gigawatts of this capacity is hydroelectric power, while 7.58 gigawatts is wind and 6 gigawatts is solar power plants. The remaining 2.52 gigawatts is supplied from geothermal, biomass and other sources.

Turkey has shown a rapid increase since 2008 and will continue the growth in renewable energy capacity. The total renewable energy capacity will increase to 47.3 gigawatts by the end of this year.

Approximately 1.1 gigawatts of energy in hydroelectricity will be commissioned, while 720 megawatts in wind and 680 megawatts in solar. In addition, 100 megawatts of biomass and 70 megawatts of geothermal capacity will be put into operation.

The installed capacity of renewable energy in Turkey will rise to 66.8 gigawatts in 2025, increase by 50 percent compared to 2019. Turkey will be the 5th country with the highest increase in renewable energy capacity in Europe, and the 12th country in the world.

Solar energy growth at full speed

During this period, the biggest increase in capacity will be seen in solar energy. Installed power in solar energy will reach 16.8 gigawatts in 2025, with an increase of 280 percent (10.8 gigawatts) compared to 2019.

Wind power capacity will reach 12.8 gigawatts, with an increase of 146 percent (5.2 gigawatts), and hydroelectric capacity will reach 33.5 gigawatts with 17.5 percent (5 gigawatts) growth. Turkey will be the leader of the increase in hydropower capacity in Europe.

Turkey’s biomass capacity of about 630 megawatts in 2025, will increase to 500 megawatts of installed geothermal power.

‘’Turkey is among the cheapest countries in the wind energy.’’

Heymi Bahar, the IEA Senior Analyst pointed out that wind power plant constructions in Turkey are continuing despite the coronavirus epidemic. He said:

Investors tried to complete their projects until the end of the Renewable Energy Resource Areas Support Mechanism (YEKDEM), on December 31. This date has been extended to 31 June 2021 due to Covid-19, some projects will now be completed by June 31. Extending the date of YEKDEM has also developed an opportunity for the realization of more projects. For this reason, we anticipate that 720 to 900 megawatts of wind this year, and close to 1000 megawatts of wind will come into play next year. Since the date of YEKDEM is over and the new support mechanism is not clear yet.’’

Stating that some uncertainties may occur in 2022, Bahar continued as follows:

‘’It’s not just for Turkey policy changes confront us as the biggest challenge for projects in every country. There are uncertainties for investors in the transition period, but we expect renewed growth in wind energy capacity towards 2025. Turkey is one of the countries with the cheapest price in the world in wind energy at the moment. Considering these prices and potential, I can say that we will see a serious growth.’’

‘’Solar energy in Turkey will be much more developed in the future.’’

Bahar stated that 2020 will be a transition year in solar energy, he said:

‘’We are following the 1000-megawatt Mini Renewable Energy Resource Areas (YEKA) tenders. We anticipate that this capacity will be active in 2021. At that point, there will be a very good progress in solar energy from various fields together with mini YEKA, rooftop solar power plants and other projects. There are many big projects and solar energy in Turkey will be much more developed in the future

Prices of solar energy auctions held in Turkey came to a competitive level and were quite low compared to Europe. The financing conditions will get better as of next year, with the growth in the economy.

The increase in the production of solar panels and wind turbine components in Turkey have created convenience for investors. The fact that a large portion of production will shift to Turkey can help divergence from dollar-based financing. Therefore, I can say that the more domestic production, the cheaper the financing will be.’’

‘’Growth continues in the second wave of the epidemic.’’

Evaluating the global renewable energy outlook, Bahar stated that the renewable energy capacity will achieve record growth in the world this year. Pointing out that renewable energy continues to grow even in the most difficult period of the epidemic, Bahar said:

‘’Renewable energy has adapted very quickly to this process that we call the new normal. The mobility in this area continued despite the first period of the epidemic. Investors’ demand is still very high. ‘’

Bahar added that the value of the shares of renewable energy companies in the world stock markets has increased more than twice during the epidemic period.

source: AA / translated by Melisa Karayusufoglu

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