Foreign investors have begun to show interest in the upcoming tender for Turkey's Wind Renewable Energy Resources Area Project (YEKA) to be held this summer, president of the Investment Support and Promotion Agency of Turkey (ISPAT) said on Thursday.
Speaking exclusively to Anadolu Agency, Arda Ermut, president of the ISPAT, noted that the tender for Turkey's biggest solar power plant, Karapinar YEKA, was held on March 20, of which the winner will employ locals to produce the solar equipment for the plant, for domestic sales and for export.
"Thanks to such mega projects, we can attract investments in other fields like equipment production and in breakdowns of this sector, and thus, we can create a value chain," he said.
Turkey plans to supply most of its energy needs from domestic resources and held its first auction for renewable energy resources for 1,000 megawatts of installed capacity along with a production factory for photovoltaic equipment. The tender requested that the winner produces equipment locally and stipulated that local engineers should constitute 80 percent of employment at the project.
The cost of the project is calculated at $1.3 billion.
Ermut stated that a similar tender will be held for 1,000 megawatts of wind for the YEKA project for which investors will submit their final bid offers by July, 27. He added that foreign investors have already begun to show interest in this giant project.
YEKA will enable the country to install 1,000 megawatts of wind capacity in seven regions of Turkey with high wind power potential at a cost of around $1.2 billion.
The successful winner will construct a wind turbine factory in Turkey in the following 21 months following the signing of the agreement. The winner has to manufacture at least 150 wind turbines per year, each with a minimum capacity of 2.3 megawatts.
The investor is obligated to fulfill 65 percent of production domestically for the project. The winner also has to pledge to have 90 percent domestic employment in the construction and operation of the factory while this percentage is stipulated as 80 percent for employment in research-development (R&D).
Turkish companies can also form consortiums and partnerships with international investors.
- Referendum will have positive impact on investments
Ermut said that the "Yes" vote in the Turkey's referendum last Sunday had already been factored into Turkish markets and businesses.
In the historic referendum, Turkish voters approved changes to the country’s constitution that would usher in an executive presidency.
"Now, it is time to complete the reforms and other regulations. Investors are also waiting for this, and I think that we will start seeing the positive impacts of this process in terms of investments in 2017," he concluded.
By Nuran Erkul