Return on SES investments dropped to 4 years

“With its recent developments, Turkey rose to 11th place worldwide. Based on the latest regulation issued, return on rooftop SES investments dropped down to 4 years,” said Abdullah Göktekin, Chairman of Göktekin Enerji that provides project and consultancy service on renewable energy sources, particularly on solar energy, and in addition to this, installs turnkey solar energy plants, stating that the Monthly Settlement Regulation put into effect through the Regulation on Unlicensed Electricity of May 12, 2019 cleared the way for the sector.

Providing information on whether Turkey make adequate use of its solar energy potential, Göktekin spoke as follows: “With YEKDEM, Turkey took a great step regarding the advancement of the sector, and rose to 11th place worldwide.” Emphasizing that, in the new system, the electricity that is not consumed will be bought by the government, Göktekin continued as follows: “With the new regulation issued, the way to production of electricity for self-consumption has now been cleared. In the previous period there was this concept of hour-based settlement. That is, the electricity you generated used to be compared to the electricity you consumed, and after the settlement, the surplus production, if any, was given to the system free of charge. For example, if your company was closed at weekend, the Sun still continued to generate your electricity, however, since this was not paid to you, it had a negative impact on feasibility. With the new regulation issued, the electricity you produce throughout a month is now matched with the electricity you consume within that month, and this amount is settled. If you consume more than you produce, then you continue to pay the price of the remaining electricity, or, if you consume less than you produce, then the government repurchases your electricity at the price it sold it to you. With this favorable development, feasibilities have changed positively.”

“We support companies’ access to long-term and cheap finance.”
Stating that they were making efforts top to resolve misbeliefs and perceptions that return on solar power plant investment is long, Abdullah Göktekin expressed as follows: “Prices dropped in many SPP components. Furthermore, the government gives guarantee of repurchase for 10 years at the prices it sells. Banks and leasing companies do not hesitate to provide financial support to SES investment designed by appropriate companies, and we, as Göktekin Enerji, provide consultancy service to our companies, help them to find correct financial solutions. Within this scope, we sign collaboration protocols with “İş FinansLeasing”,“QNB Finans Leasing” and Garanti BBVA Leasing in order to support companies in accessing long-term and cheap financing. Now companies are to make well use of these opportunities that provide them with competitive advantage.”

“There is a potential of over 5.000 MW”
Göktekin, saying that investments towards self-consumption were rapidly increasing, continued as follows: “Based on the recently issued regulations, we believe that we, as a country, have a potential of installing solar power plants of over 5,000 MW within the coming 3-4 years. In fact, power plant installation of around 5,868 MW was carried out in Turkey since 2016. But we believe that the same will be achieved within the 3-4 coming years. But this time it will be rooftop power plant installations for self-consumption. Even now, an invitation letter for rooftop self-consumption SPP of 1,544 MW was received, and as of the end of 2019, rooftop SPP installation of 252 MW was carried out.
Abdullah Göktekin, the Chairman of Göktekin Enerji 

”A particular importance should be attached to safety in rooftop SPPs”
Mentioning the importance, regarding the safety of the life and property, of the fact that rooftop SPP investments, particularly in factories, are made by competent companies, Göktekin noted the followings: “Hundreds, even thousands, of people work in factories. Materials to be used in SPPs to be installed on the roofs of factories established by making millions dollars of investments should have advanced level safety equipment. Installing invertor system with optimizer is very important in many aspects, particularly regarding safety. The company to perform the installation should also be an expert in power plant installation. Not everyone should do, or should be allowed to do, this job. It should always be kept in mind that, in case of fire and similar circumstances that are likely to be experienced, property may be replaced but souls lost will never come back again.” 

“Our SPP investments continue” 
Mentioning the land type power plant installation of total of 33 MW in Ağrı, Van, Adana and Osmaniye by Göktekin Enerji in recent months, Abdullah Göktekin provided the following information: “In addition, we perform the installation of a rooftop SPP of 5 MW for Yesil Küre, a Tiryaki Holding affiliate that contains 24 hencoops in Bafra, Samsun. Presently our SPP installations of 12 land type of 32 MW, and 8 roof type of 50 MW in Bitlis and Eskisehir continue. We took over 100% share of Gülbahar Elektrik Üretim A.S, the owner the license for 16 MW power, one of the remaining limited licensed SPP projects, in Adilcevaz District of Bitlis Province following the approval from EPDK. It should primarily be stated that SPP investments are very long term ones. Lifetime of panels is more than 40 years. Product warranty is 10 years, and performance warranty is 25 years. When you look at it that way, it is obvious how important the material quality is. We always use the panels of brands in the Bloomberg Tier 1 lists which publishes the best and bestselling panels, and choose from the materials with the highest efficiency. Although we trust our engineers very much, and claim that we do the best job, we still get ourselves audited by independent auditors. In addition, related to our business line, we get a TUV Quality Standards Certificate issued for every power plant we build. In other words, our investors then have a power plant with a world class TUV Quality Standards Certificate.”

Reference: GES Magazine