The Republic of Türkiye’s Ministry of Energy and Natural Resources (“Ministry”) announced the Tender for the Allocation of Renewable Resource Areas and Connection Capacities Based on Wind Energy (the “WPP YEKA Tender 2024”) for new wind power plant projects (the “WPPs”) in the Official Gazette dated 28 October 2024 and numbered 32706 (the “Tender Announcement”). The tender specifications (“Specifications”)[1] and the draft contract (“Contract”)[2] for the WPP YEKA Tender 2024 are also published in the Ministry’s official webpage.

Pursuant to the Tender Announcement, the WPP YEKA Tender 2024 will be organized for 1,200 MW connection capacity in total for five WPPs to be located in Edirne, Kırklareli and Sivas provinces as detailed in the table below:

(Annex 1 and Annex 6 of the Ministry’s Specifications for the WPP YEKA Tender 2024)[3]

The applications will be collected on 21 January 2025 between 10:00 – 12:00 local time at the Ministry.

1. Main Principles and Procedures for the WPP YEKA Tender 2024

Eligible bidders. Only (i) Turkish legal entities incorporated as joint stock company or limited liability company under Turkish Commercial Code No. 6102 (the “TCC”) and (ii) foreign companies that qualify as a “company” under their own jurisdiction are eligible as the bidders for the WPP YEKA Tender 2024 (the “Bidders”). The Bidder, who will be awarded for the WPP YEKA Tender 2024 (the “Awardee”), will proceed with the next steps under the terms and conditions as set out below.

In case a foreign Bidder is selected as the Awardee, the foreign Bidder shall incorporate a legal entity in the form of either joint stock company or limited liability company in Türkiye, with the same shareholding structure that it attended the tender or in which it holds the entire share capital, until the signing date of the Contract at the latest.

Procedure. The Bidders shall submit their financial bids within the range of USD 5.50 cents/kWh (“the Ceiling Price”) and USD 3.50 cents/kWh (the “Floor Price”) for the unit electricity purchase price. The financial bids that are not in the range of the Ceiling Price and the Floor Price shall not be considered as valid. The WPP YEKA Tender 2024 will be organized in the form of a Dutch auction method, in which maximum five Bidders, who quoted the lowest financials bids in the first round, will compete until the lowest and final bid above the Floor Price is reached, by sequentially underbidding the previously quoted lowest price starting from the lowest financial bid as a basis.

In case a Bidder quotes the Floor Price, financial bids shall be received from other Bidders in sequence. If the other Bidders withdraw from the tender (i.e. if only one Bidder quotes the Floor Price), the process shall be concluded. However, in case a second Bidder quotes the Floor Price, such second Bidder shall be deemed to have accepted to pay a minimum USD 10,000 per MW as a contribution fee. Subsequently, Bidders agreeing on the Floor Price shall compete on highest amount of contribution fee by way of auction. Such auction is concluded once the highest contribution fee is reached by one Bidder (which is not matched by the other Bidders).

In case a contribution fee is determined as a result of the WPP YEKA Tender 2024, such amount shall be paid to EPİAŞ (Enerji Piyasaları İşletme Anonim Şirketi / Turkish State company authorized to manage and operate Turkish electricity market) in full within 20 business days after the Bidder is invited for signing the Contract, based on the foreign exchange selling rate of Central Bank of Republic of Türkiye effective as of the payment date. If the contribution fee is not paid on time, the bid guarantee provided by the Bidder shall be recorded as income and the Bidders with second and third lowest bids, respectively, shall be given 20 business days to pay the contribution fee and sign the Contract.

Upon the completion the process above, the tender commission’s minutes shall be prepared and submitted to the General Directorate of the Ministry for the Ministry’s approval. Upon the Ministry’s approval, the WPP YEKA Tender 2024 shall be concluded and the Awardee shall be invited to the sign the Contract within 30 days following the invitation for the same.

Financial Guarantees. The Bidders must submit an unlimited letter of guarantee to the Ministry in the amount of USD 20,000 per MW, which is valid for one year and fully or partially convertible into cash at the application stage for each tender process within the scope of the WPP YEKA Tender 2024 (the “Provisional Guarantee”). Furthermore, the Awardee must submit an unlimited letter of guarantee in the amount of USD 50,000 per MW, which is valid for a period of 10 years, and fully or partially convertible into cash to the Ministry one day before the Contract is signed at the latest (“Performance Guarantee”). Provisional Guarantee shall be returned to the Awardee once the Performance Guarantee is provided. The Performance Guarantee may be converted into cash by the Ministry to compensate its damages and to collect penalties that may occur due to the Awardee’s failure to comply with the Contract’s provisions.

2. Material Conditions within the scope of the WPP YEKA Tender 2024

Sales & Pricing Conditions. The electricity generated within the scope of WPPs will be sold in the free market for 72 months beginning from the signing date of the Contract (the “Free Market Sales Period”), and shall be supplied to the transmission system after the end of the Free Market Sales Period in consideration of the purchase price determined as a result of the WPP YEKA Tender 2024.

Until the end of the Free Market Sales Period, the electricity generated shall be traded in the free market. If the market clearing price falls below USD 4.95 cent/kWh in the relevant settlement period, the electricity purchase price shall be applied as USD 4.95 cent/kWh, based on the foreign exchange buying rate of Central Bank of Republic of Türkiye as of the date when the electricity is supplied to the system.

In case a time extension is granted within the scope of the Regulation on Renewable Energy Zones, the Specifications and the Contract, the additional period granted shall not be added to the Free Market Sales Period. The “unit electricity purchase price” specified in the Contract shall be applied for the electricity generated for 20 years after the end of the Free Market Sales Period. Apart from this, price increases shall not be allowed for any reason.

The Ministry undertakes to evaluate electricity generated by the WPP within the scope of the Renewable Energy Resources Support Mechanism (“YEKDEM”) and that prices paid will be in accordance with the Specification and Contract, even if there is a change in YEKDEM.

Fees paid to the Turkish Electricity Transmission Company (TEİAŞ) that are within the scope of the transmission fee during the electricity purchase period will be reimbursed to the Awardee within the scope of the YEKDEM system.

Other Project and Regulatory Conditions. The WPPs cannot be used for any other purpose, and shall exclusively generate electricity by wind power. The WPPs shall be constructed in Türkiye in compliance with minimum local content rates.

The Awardee shall comply with the local contribution rate for the components to be supplied within the scope of the WPPS, which is at least 55% as per the Specifications. However, local contribution subsidy provided within the scope of the Law on the Utilization of Renewable Energy Resources for Electricity Generation No. 5346 shall not applicable.

The Awardees shall perform all construction, commission and regulatory works, including feasibility studies, permits, and license and approval procedures and assume all costs and liability for the safety, occupational health, and environmental measures thereof for the WPPs.

The preliminary license period for the WPPs shall be maximum 24 months and construction period shall be maximum 36 months from the issuance date of the license. No electrical capacity increase shall be allowed for the WPPs during term of the Contract.

The WPP YEKA 2024 Tender presents a strategical opportunity for both investors and Türkiye’s growing renewable energy capacity.

[1] [3] English version of the Specifications is available at here:
[2] English version of the draft Contract is available at here: