Turkey Makes the Largest Solar Project Tender in the World

Hanwha-Kalyon consortium builds one of the largest solar power plants in the world, in Karapınar district of Central Anatolian province of Konya.

The Karapınar Renewable Energy Resource Area (YEKA) tender was made on March 20, 2017 within the Ministry of Energy and Natural Resources. The consortium of Limak-CMEC-Hareon Solar, the consortium of the Kalyon-Hanwah Group, the consortium of Çalık Enerji-Solargiga and the consortium of AKC consisting of Turkish, Saudi Arabian and Chinese companies participated in the tender for the Karapınar YEKA-1 Solar Energy Power Plant located in Karapınar Energy Specialized Industrial Zone.

The price cap per kWh was set at USD 8 cents at the tender. The tender was performed using the reverse auction method. The Kalyon-Hanwa Group, the Turkish-South Korean consortium, submitted the lowest bid at USD 6.99 cents per kWh in the 19th round of underbidding and won the tender.

The winner of the tender will construct the largest solar energy power plant in Turkey with a capacity of 1000 MW. This will also be the first implementation based on localization and YEKA-based price determination.

A factory with a minimum capacity of 500 MW of photovoltaic module production per year will be established in Turkey within the scope of the project. Also, a capacity of 1000 MW will be assigned to Karapınar YEKA on condition that research and development studies will be conducted for the next decade. Photovoltaic modules which will be used in the field are to be produced in the factory which will be built within 21 months of the date of the contract.

A USD 1.3 billion investment is expected for the project while 1.7 billion kWh of electricity will be produced by the power plant which will meet the requirements of 600 thousand homes. The increase of renewable energy and equipment production, technology transfer, and a decrease in dependence on foreign resources in the future were all included within the goals of the project.