Investing in Onshore Wind (RES) in Turkey: YEKA-RES Tenders, Repowering, and Bankable Structures — A Legal Brief for Foreign Investors

Türkiye’s onshore wind market remains one of the most dynamic segments of its power sector, driven by competitive YEKA-RES tenders, steady project pipelines under the licensed/unlicensed regimes, and a rising opportunity set in repowering. Below is a practitioner-oriented legal roadmap that foreign investors can use to de-risk entry, diligence counterparties, and structure bankable transactions.

1) Market entry routes and corporate set-up
Foreign investors can participate as developers, lenders, equipment providers, or acquirers of ready-to-build/operational special purpose vehicles (SPVs). Corporate forms typically include a joint-stock company (A.Ş.) or limited liability company (Ltd. Şti.). At term sheet stage, ring-fence construction and operational risks within the project SPV; place upstream IP/service agreements and intercompany loans under a holding entity to allow lender step-in and collateral flexibility.

2) YEKA-RES tenders — how they work and what to watch
YEKA-RES (renewable energy resource area) tenders competitively allocate capacity across designated zones, usually with tender documents prescribing: (i) qualification criteria and bid bonds, (ii) site boundaries and connection points, (iii) local content/technology obligations (where applicable), and (iv) milestone schedules for financial close and COD.
Legal diligence priorities:

  • Tender specs & price formula (indexation, escalation, penalties).
  • Grid deliverables with TEİAŞ (transmission) or distribution operators: connection agreements, protection schemes, and curtailment procedures.
  • Land status (state, treasury, forest, private), lease/usage rights, and expropriation strategy if right-of-way is needed for internal cabling and access roads.
  • Environmental and permitting baseline (EIA thresholds, ornithological/bat surveys, shadow flicker/noise assessments), plus aviation and defense radar clearances along the turbine corridor.
  • Security package: performance bonds, parent guarantees, and back-to-back obligations in EPC/OEM contracts aligned with tender milestones.

3) Licensed projects outside YEKA and unlicensed edge cases
Beyond YEKA, developers can pursue licensed projects through the EMRA (EPDK) pre-license → license pathway, subject to capacity, resource measurements, and connection feasibility. While wind is typically licensed, unlicensed structures may appear in limited, site-specific contexts (e.g., small hybridizations at consumer sites). In all cases, connection capacity and curtailment history are the gating variables for bankability.

4) Repowering — replacing old turbines with fewer, larger machines
A growing share of asset owners evaluate repowering to increase yield, reduce O&M, and extend asset life. Legally, repowering is more than a “like-for-like” substitution:

  • License amendments are required where turbine ratings, hub heights, rotor diameters, or layout changes affect the grid model or noise/flicker envelopes.
  • Permit refresh: EIA scoping may need to be revisited; forestry permits, access road alignments, and cultural heritage consents can’t be assumed to carry over automatically.
  • Land & easements: renegotiate lease terms for new micrositing and crane pads; check mortgageability and assignability for lender security.
  • Revenue: repowering often coincides with the end of a feed-in or support period; re-underwrite offtake via corporate PPAs, merchant exposure with hedges, or tender-linked pricing.
  • OEM and warranty strategy: where legacy OEMs exited, structure bridging warranties and performance insurance; document removal/recycling obligations to avoid environmental liabilities.

5) Permitting, land, and environmental safeguards

  • Land: Verify cadastral status early (treasury, forest, pasture, private). Forest lands require additional permissions and fees; corridor rights for internal collection systems and roads need robust easements.
  • EIA and environmental: Depending on project size and sensitivity, EIA screening/reporting may apply; integrate bird/bat monitoring and noise/shadow flicker mitigation plans into the permit set and O&M manuals.
  • Aviation/Defense: Obtain obstacle and radar clearances; turbine lighting plans must comply with aviation safety rules.
  • Health & Safety: Construction and lifting plans, contractor competence, and emergency procedures should be contractualized; align EPC and BoP contractors on CDM-style safety matrices.

6) Grid and dispatch — the crux of bankability
Onshore wind value hinges on connection rights and curtailment exposure. Key documents include the connection agreement, system reinforcement obligations, and protection settings. For hybrid wind-plus-storage or wind-plus-solar behind the same node, amend the license and connection studies; clarify dispatch rules, metering, and energy management system responsibilities. Lenders will insist on historical curtailment data and sensitivity cases in the financial model.

7) Revenue frameworks — auctions, YEKDEM, and corporate PPAs
YEKA pricing gives long-term visibility subject to tender rules. Outside YEKA, projects historically relied on the renewable support scheme (YEKDEM) or merchant/bilateral sales. Today, corporate PPAs (physical or virtual) are increasingly relevant for post-support projects and repowering, especially when paired with storage to smooth profile and reduce imbalance. Bankable PPAs should address:

  • Indexation and currency (TRY vs. FX).
  • Change-in-law triggers and tariff adjustments.
  • Curtailment allocation, deemed energy, and compensation mechanics.
  • Performance LDs, force majeure (including grid outages), step-in rights, and assignment to lenders.

8) Procurement and construction risk allocation
Use an EPC wrap or well-coordinated split contracts (TSA + BoP + grid). Secure:

  • OEM performance warranties, availability guarantees, and long-term service agreements (LTSA).
  • Liquidated damages aligned with the project schedule and tender milestones.
  • Customs and logistics planning for towers/blades; oversize transport permits and route surveys must be completed before NTP.
  • Insurance: CAR/EAR, marine cargo, delay in start-up (DSU), third-party liability, and O&M-phase BI.

9) Compliance, competition, and anti-corruption
Promotion or hospitality linked to public procurement, interactions with grid operators, and land authorities must comply with anti-bribery rules. Competition law considerations arise in turbine supply, service markets, and power trading; avoid resale price maintenance and information exchanges in PPA consortia. Implement robust KYC/AML, sanctions screening, and third-party due diligence for agents and local consultants.

10) Incentives and financing
Projects may benefit from Türkiye’s Investment Incentive System (customs/VAT reliefs, interest support, and regional incentives). Where applicable, technology development zones and green finance facilities (including multilaterals) can support interest-rate and tenor improvements. Banks scrutinize grid deliverables, land tenure, and offtake robustness; align direct agreements to preserve lender step-in.

Actionable takeaways

  • For greenfield scale, bid YEKA-RES and mirror tender obligations in EPC/OEM contracts.
  • For faster value creation, repowering with fewer, larger turbines can uplift yield—budget for permit refresh and grid re-studies.
  • Bankability rests on grid rights and curtailment; treat these as primary diligence gates.
  • Lock in land/EIA/aviation early, and negotiate PPAs with explicit change-in-law and curtailment clauses.
  • Use a layered security package (share pledges, receivables, accounts, land rights, step-in) and a construction risk matrix aligned to lender requirements.

With disciplined structuring and early grid-land-permit locking, foreign investors can capture resilient returns in Türkiye’s onshore wind—both via competitive YEKA-RES pipelines and value-accretive repowering programs.

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