Turkey announces 2016 guarantees for generation from local coal

Turkey announced Tuesday details of the 2016 purchasing program for state power buyer and trading company Turkiye Elektrik Ticaret ve Taahhut AS (TETAS) for power generated by private power plants burning domestic coal.

The Turkish cabinet has decided that this year TETAS would buy a total of 6 TWh of power generated from locally produced coal for which it will pay Lira 185/MWh ($62.1/MWh), according to an announcement in Turkey's official state gazette Tuesday.

Generating companies have the right to sell up to 3% of their annual generation on application to TETAS within 60 days, after which TETAS will draft a purchase agreement designating how much power will be purchased and when it will be supplied, according to the announcement.

In future the decision by the cabinet as to how much power generated by local coal TETAS will buy and the price to be paid will be announced in October of the preceding year, with TETAS allowed to increase or decrease the volume by 10% as deemed necessary, the announcement said.

Similarly the cabinet will also announce each October how much power generated by coal-fired plants belonging to state generator EUAS that TETAS will buy and the price to be paid.

Turkey has 29 power plants totalling 9,842 MW burning locally produced coal, with a further six totalling 1,606 MW licensed and under development and another seven totalling 1,619.5 MW holding pre-licenses, which guarantee that a full generating license will be issued once finance for the development of the plant has been secured.

Turkish officials said earlier this year that Turkey would begin offering incentives to power plants burning local coal and were no longer in favor of developing plants burning imported coal. Last week Turkey said it would impose import duties of $15/mt on coal imported for power generation.

Source: Platts