Türkiye has awarded contracts for solar projects with a total capacity of 800 megawatts across six provinces, which will generate $500 million in investment. These YEKA solar projects will boost renewable energy growth, reduce energy imports, and support domestic technology production.
YEKA Solar Projects to Drive Renewable Energy Growth
Türkiye has taken a significant step towards expanding its renewable energy capacity by awarding contracts for solar projects with a combined installed capacity of 800 megawatts (MW). These projects, which are part of the Renewable Energy Resource Zone (YEKA) auction mechanism, are expected to attract around $500 million in investment. The tenders cover six provinces across the country, including Konya, Karaman, Antalya, Malatya, Van, and Kütahya.
The YEKA scheme — introduced in 2016 — aims to simplify the land allocation process for investors, facilitate the deployment of large-scale renewable energy projects, and encourage the domestic production of renewable energy technologies. This year’s tenders mark another milestone in Türkiye’s commitment to reducing energy imports and increasing energy independence.
The largest solar projects have been awarded to Kalyon and Temmuz Güneş. Kalyon will construct a 385 MW solar plant in Konya, while Temmuz Güneş has secured the contract for a 200 MW plant in Karaman. The remaining four projects will be built in Antalya, Malatya, Van, and Kütahya.
Financial Incentives and Economic Impact
To attract more investors, the Turkish government updated the YEKA model in 2024. These updates include simplified post-tender permitting procedures and financial incentives, such as exemptions from transmission fees.
Each participating company will make a one-time payment per megawatt of installed capacity, ranging from $67,000 to $270,000. The total payments to the Ministry of Energy and Natural Resources are expected to reach approximately $101 million.
The Energy Ministry estimates that the total investment for these solar projects will be around $500 million. The projects will collectively generate 1.5 billion kilowatt-hours of electricity annually, which is enough to meet the energy needs of 600,000 households.
The electricity produced will reduce Türkiye’s natural gas imports by approximately 300 million cubic meters per year, thus saving the country about $150 million annually. Over 20 years, this translates to more than $3 billion in savings from reduced natural gas imports.
Addressing Türkiye’s Energy Challenges
Türkiye faces significant challenges due to its limited oil and natural gas resources. The country has a high current account deficit driven by vast energy imports. To address this issue, the government has been promoting private sector investments in renewable energy since 2005.
The country’s electricity consumption has tripled over the past two decades and is expected to continue rising. This growth is driven by a broader energy transformation. It involves shifting from fossil fuels to electricity generated from renewable sources.
Türkiye’s renewable energy capacity currently stands at around 32,000 MW, including both wind and solar projects. The government aims to increase this figure to 120,000 MW by 2035. To achieve this goal, the Energy Ministry plans to hold YEKA auctions of at least 2,000 MW annually.
Last week, Türkiye completed tenders for 1,200 MW of wind energy projects. These tenders are expected to bring in $1.2 billion in investment. Combined with the latest solar projects, these developments will increase the country’s wind and solar capacity by 6.3%.
Local Production and Green Employment
Energy and Natural Resources Minister Alparslan Bayraktar emphasised the importance of using domestic equipment in these projects. The tenders included a minimum local content requirement of 75% for solar panels and modules. This requirement ensures that the panels used in these solar projects will be produced in Türkiye.
Bayraktar also announced that the ministry is working on a reform package to accelerate investment processes in wind and solar energy. “We will implement projects that will reduce our country’s dependence on foreign energy, meet growing energy demands, and contribute to our climate and emission reduction targets,” he said.
Türkiye’s latest round of solar projects, awarded under the YEKA scheme, represents a major step forward in the country’s renewable energy ambitions. With a combined capacity of 800 MW and an investment of $500 million, these projects will significantly reduce natural gas imports, lower energy costs, and contribute to the country’s climate goals.