Turkey: Business development opportunities beyond the gold rush (just some stats)

Finally a tender was announced, creating the long awaited start of the Turkish market. With the opening of the tender for 600MW there were projects submitted for 9GW(!), a real gold rush.

For those that want to get involved in this market for the long run though, there are many more interesting opportunities. If it was me, I’d provide large commercial companies with systems up to 500kW, optimized for self-consumption: there’s no difficult licensing process, they can hedge their electricity bill (as prices rise steeply), they will save directly on their energy bill and there’s a tariff for all excess electricity.



Just some stats:

  • $0,14 - Electricity costs per kWh for industrial sector
  • $0,16 - Electricity costs per kWh for private households.
  • 11% - average yearly price increase since 2006
  • 6% - annual growth of electricity demand
  • 29GW - new power plant capacity needed by 2021 to keep up with demand
  • 20GW - capacity that is outdated and needs to be replaced by 2021
  • Politics - desire for greater independence from Russian and Iranian gas imports
  • 1311 kWh/m2 - average yearly solar radiation (source / source 2)
  • 1530 KWh / kWp - irradiation as according to ib Vogt calculation (presentation)
  • $0,133 / kWh - price for which all excess renewable electricity will be bought for a period of 10 years under law #5346 (source / source with graph)
  • $0,067 / kWh - Bonus on FiT for systems with high proportion of local content, bonus is giving for 5 years of the 10 years FiT period (source / source 2)
  • 75 Million - population in 2013
  • 6,7% - Expected yearly economic growth 2011 - 2017 (source)
  • 30% - Turkey aims to generate 30% of its energy from renewable energy sources by 2023, a $40 billion investment opportunity
  • 600 MW - First tender set out by the government. More than 9 GW of projects were submitted by 409 companies.
  • 4,5% Interest rate (historically low);  lending rate has been increased from 6.5 percent to 7.25 percent
  • 8.88 percent Inflation rate in July of 2013 (highest in 1 year)
  • In November Solarplaza is organizing a trade mission specifically focused on developing solar projects for the commercial segments. Feel free to get in contact if this is of interest to you or your business.