Turkey’s renewable energy market is moving fast — and the numbers back it up. The country has committed to reaching 120 GW of solar and wind capacity by 2035, launching at least 2 GW of new YEKA (Renewable Energy Resource Zone) tenders every year to stay on track. With 5.8 GW already allocated through competitive auctions (3 GW solar, 2.8 GW wind), the pipeline is real, the framework is tested, and foreign capital is actively being sought. If you are exploring how to invest in Turkey’s renewable energy sector, this guide covers everything you need to know before committing to a YEKA bid.
What Is the YEKA Tender Model?
YEKA stands for Yenilenebilir Enerji Kaynak Alanları — Renewable Energy Resource Zones. Launched in 2016, the model was designed to channel large-scale investment into solar and wind generation through competitive auctions backed by a government offtake guarantee.
The logic is straightforward: the state designates a specific zone with cleared land rights and a grid connection point, then runs a competitive auction for the development rights. The winning bidder receives a long-term power purchase agreement at a USD-denominated feed-in tariff (FiT) for a fixed period, currently 10 years. This dollar-based structure is not an accident — it was deliberately designed to reduce currency risk and attract foreign capital that would otherwise shy away from exposure to the Turkish lira.
Since 2016, the model has evolved substantially. What began as a straightforward solar and wind auction framework now includes provisions for battery storage integration, hybrid systems, and will soon extend to offshore wind. The domestic content requirement — which initially caused concern among international investors — has, for many, become a strategic entry point into Turkey’s manufacturing ecosystem.
Key Regulatory Changes in 2024–2026: What Changed for YEKA Investors
The Turkish government introduced a package of reforms between 2024 and 2026 that materially improved the attractiveness of the YEKA framework. Foreign investors evaluating Turkey today are looking at a fundamentally different regulatory environment compared to 2021 or 2022.
The “Super Permit” Reform: Turkey’s renewable energy permitting process was notorious for delays — often stretching to four years across more than twelve government bodies. The “super permit” reform, applied to YEKA contracts from November 2024, introduced single-window coordination across forestry, environmental, and zoning approvals. The average permitting timeline has now dropped to under 24 months.
Transmission Fee Exemption: Projects within YEKA zones are exempt from transmission charges when wheeling power to the grid. For a 200 MW solar plant, this translates to a meaningful reduction in annual operating costs and a direct improvement to project IRR.
Battery Storage Rights: Following a 2024 regulatory change, YEKA winners can now install battery energy storage (BESS) up to the rated capacity of their generation asset — without requiring an additional licence. Storage enables revenue from day-ahead arbitrage, ancillary services, and potentially capacity markets as Turkey’s grid matures.
Post-FiT Market Window: Once the 10-year FiT period concludes, YEKA contracts now include a 60–72 month window to sell electricity freely on the wholesale market — a feature that significantly improves long-run financial projections.
Step-by-Step: How a Foreign Investor Participates in a YEKA Tender
Participation in a YEKA auction requires meeting a set of procedural and financial thresholds. The following table outlines the typical timeline from initial planning to financial close:
| Step | Action | Estimated Duration |
|---|---|---|
| 1 | Establish a Turkish legal entity (A.Ş. or Ltd. Şti.) | 2–4 weeks |
| 2 | Pre-qualification application & technical eligibility | 4–6 weeks |
| 3 | Obtain bank guarantee / bid bond | 2–3 weeks |
| 4 | Prepare and submit tender offer | 4–8 weeks |
| 5 | Tender evaluation and award announcement | 6–12 weeks |
| 6 | Contract signing and preliminary licence | 4–8 weeks |
| 7 | Construction and commissioning | 24–36 months |
Three practical points foreign investors frequently overlook:
1. All tender documents are issued in Turkish. Without qualified local support, even technically strong bidders lose ground in the document management phase. 2. The bid bond amount is set per MW of capacity tendered. For a 200 MW bid, this can represent a substantial commitment that must be arranged through a Turkish bank or a bank with correspondent relationships in Turkey. 3. Consortia structures — combining a foreign technology/capital partner with a Turkish operating partner — are not required by law but are strongly advantageous in practice. They reduce friction across permitting, local procurement, and regulatory liaison.
2025–2026 Auction Calendar: Where Are the Opportunities?
Early 2025 saw 2,000 MW of capacity allocated in a single auction round. The November–December 2024 auctions attracted approximately USD 3.3 billion in expected investment commitments. Regional zones already confirmed or in advanced planning include:
Wind (RES) Zones:
- Sivas, Balıkesir, Aydın, Denizli, Kütahya
Solar (GES) Zones:
- Elazığ, Kahramanmaraş, Erzurum, Bolu, Eskişehir, Mardin, Van
These sites were selected based on a combination of solar and wind resource quality and proximity to existing transmission infrastructure. The level of international interest is confirmed by reports that Saudi Arabia’s Acwa Power is in advanced discussions for a 5 GW solar development in Turkey — a scale of commitment that signals how seriously global players are treating this market.
The Financial Model: USD FiT, Guaranteed Offtake, Long-Term Land Rights
The financial architecture of YEKA is explicitly designed to be bankable for international lenders. Key parameters are summarised below:
| Parameter | Detail |
|---|---|
| FiT Currency | USD (US Dollar) |
| FiT Duration | 10 years |
| Minimum Floor Price | USD 4.95 cents/kWh (2024 REZ-SPP baseline) |
| Offtake Guarantee | Yes — via TETAŞ (Turkish Electricity Trading Co.) |
| Land Use Right | 49 years (Treasury land) |
| Post-FiT Market Window | 60–72 months free market sales |
| Transmission Fee | Exempt |
For a representative 100 MW solar project in a high-irradiance zone (Kahramanmaraş, Van), financial models typically yield a payback period of 10–13 years and an unlevered IRR of 12–16%, depending on EPC cost, local financing rates, and storage configuration. Dollar-denominated revenues provide natural protection against lira depreciation — a key concern for international debt providers and equity partners alike.
The Domestic Content Requirement: Burden or Entry Point?
The domestic content requirement is among the first questions international investors raise — and, frequently, the one they are most relieved to understand properly.
The Karapınar solar zone is the clearest illustration. South Korea’s Hanwha entered the Turkish market through a consortium with Kalyon, and in doing so committed to establishing a solar panel manufacturing facility in Turkey. The result: Hanwha satisfied its domestic content obligation while simultaneously positioning itself in one of the fastest-growing solar equipment export markets in the region. Siemens, Türkerler and Kalyon followed a parallel path in wind, establishing a turbine manufacturing facility in İzmir Aliağa that now serves not just the domestic YEKA pipeline, but regional export markets as well.
Typical domestic content scope by project type:
- Solar: panels/modules, inverters, mounting structures, cables
- Wind: tower sections, nacelle assembly, blades (partially), transformers
For a foreign equipment manufacturer or EPC contractor, the domestic content requirement is effectively an incentive to establish Turkish manufacturing operations — which opens a second revenue stream alongside the generation project itself.
Why Consortium Structuring Matters
Many international investors approach Turkish partnerships as a bureaucratic necessity. In practice, the right local partner is a strategic asset that determines whether a project reaches financial close in 24 months or stalls indefinitely.
A well-structured Turkish partner brings:
- Established relationships with EPDK, the Ministry of Energy, and TEİAŞ
- Land acquisition experience and existing rights portfolios
- Access to local contractors, grid connection engineers, and environmental consultants
- Banking relationships that are essential for bid bonds and project finance
Intercon sits exactly at this intersection — matching foreign capital and technology with the local operational capability needed to navigate Turkey’s YEKA process end to end. With offices in both London (16 Upper Woburn Place, WC1H 0AF) and Istanbul (Ataşehir), we work with UK, European, Gulf and Asia-Pacific investors from initial market assessment through to post-award project execution.
Ready to Evaluate a YEKA Opportunity?
Turkey’s YEKA auction pipeline offers a structured, government-backed route to renewable energy development in one of Europe’s largest and fastest-growing power markets. Whether you are an independent power producer evaluating your first Turkish bid, an equipment manufacturer exploring domestic content partnerships, or an investment fund assessing portfolio opportunities, Intercon provides the on-the-ground expertise and institutional relationships to move from due diligence to financial close efficiently.
Our London office works directly with UK and European investors, while our Istanbul team manages EPDK liaison, land rights, and consortium structuring in-market.
→ Contact Intercon to request a YEKA Market Entry Assessment
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Ready to invest in Turkey’s renewable energy sector? Explore Intercon’s services or contact our London or Istanbul team. We guide investors from initial assessment to financial close.
