CORONAVIRUS WILL AFFECT JES PROJECTS!

The corona epidemic, which has defeated the entire world economy, also shows its negative impact on the Turkish economy. The epidemic disease on a global scale, which also affects national energy investments, brings production to a standstill in many areas in the countries and causes serious restrictions in import-export transactions between countries. One of the sectors highly affected by this situation in our country is the renewable energy sector...

Producers, who supply most of their supplies in geothermal energy projects from China and European countries, say that the projects planned to be implemented in December to benefit from the Renewable Energy Resources Support Mechanism (YEKDEM) have come to a standstill.

Stating that companies will be in a difficult situation with the supplier postponements, Istanbul Bilgi University Energy Systems Engineering Department Vice President. Dr. Füsun Tut Hakdır, makes very important warnings: "According to the mechanism, the power plants whose financing has started to work in such a way that they will enter YEKDEM should be commissioned in December 2020 at the latest. Due to the worldwide crisis, it seems difficult to complete the power plants in December. For JESs that cannot be delivered to the YEKDEM mechanism, the acceptance of the "force majeure" situation in the "License Regulation" and postponing the date for another year will be an important step for our country's economy."

The global epidemic, which affects industrial and energy investments, brings production to a standstill in many areas in countries and causes serious restrictions in import-export transactions between countries. One of the important sectors affected by this situation in our country is the renewable energy sector.

The cessation of supplies from China and European countries with the epidemic affects geothermal energy investors, financing providers and equipment suppliers in the first place. While the work in the field is seriously disrupted due to the disrupted supply chain, companies will face serious problems if their projects, which are duly planned to be financed in order for investors to benefit from YEKDEM, cannot reach the deadline of 31 December 2020. Füsun Tut Hakdır, answered questions on the subject;

QUESTION: How will the loss and size of the geothermal sector be?

The geothermal sector, like other renewable energy investments, procures some of the critical equipment from abroad. In China and Europe, where most of the equipment supply is provided, the supply of equipment from these regions has stopped as the effects of the epidemic are still continuing and the project business plans are being disrupted. Geothermal energy investors, financing providers and equipment suppliers are primarily affected. Due to the disrupted supply chain, the work in the field is seriously disrupted, causing investors to face the fact that their projects, which are planned to be financed in accordance with the procedure in order to benefit from YEKDEM, cannot meet the deadline of 31 December 2020.

QUESTION: Will there be a loss of labor?

Since energy projects are investments of millions of dollars, the work schedule tabs in the projects, the inability to know when the epidemic will end have the potential to cause undesirable consequences that may cause serious financial loss of the investor and loss of labor in the future.

QUESTION: Will the country be lost? How to Overcome It?

In the period covering the period of 2019-2023 in our country, 11. According to the Development Plan , it is aimed to obtain more than 35% of total energy consumption from renewable energy sources. The disruption of renewable energy investments, which are ongoing projects of up to 3000 MWe in total, may cause permanent damage to the investor and may be an obstacle to the realization of planned renewable energy investments. Energy strategists predict that production in China could start at best in mid-April at a capacity of between 40% and 80%. These conditions seriously include the risk of not being able to keep up with the last quarter of the year to produce and transfer the equipment needed.

QUESTION: How should the suggestions and plans be? If YEKDEM is not extended, how will the national renewable targets be affected?

In the current global conditions, it seems very difficult for the completion of renewable energy investments, which have to be paused due to the epidemic disease in the form of a project whose financing has been made according to YEKDEM, to reach 31 December 2020. In particular, in order for renewable energy investors and financing providers to complete this process without a crisis, this global pandemic is defined in the " Electricity Market Regulation" and the "Regulation on Renewable Energy Resource Areas" in Article 17. Recognition by YEKDEM as the " force majeure" cause defined in the article and ensuring that investors benefit from the extension of time in the relevant regulations will allow the process to be overcome with the slightest loss. Overcoming this challenging process will allow new renewable energy investments to continue to be realized in a sound manner in the coming period and for our country to continue as one of the leading countries in the world in the production of power from renewable energy sources.

This process is also very important in the completion of approximately 4.5 billion dollars of geothermal energy investment in our country. It should also be our goal to reduce our current account deficit by investing in our national energy. As of December 31, 2020, an extension of up to 1 year is considered to be suitable for the commissioning of the aforementioned power plants.