On January 4, 2024, the Turkish Energy Market Authority (Enerji Piyasasi Duzenleme Kurumu) issued a geothermal license agreement for Kaishan Group’s wholly-owned subsidiary and Kaishan Turkey Geothermal Project Company (Open Mountain Turkey Jeotermal Enerji Üretim Limited Şirketi, referred to as OME Turkey) located in Alasehir. Energy production license for the project (No. EU/12325-2/06058).
The energy production license is valid until October 11, 2042 (note: that is the expiration date of the geothermal resource development license, and the two permits are expected to be extended), with a capacity of 11MWe and an annual power generation of 88,000,000 kilowatt hours.
Obtaining the energy production license is an important milestone in the construction of the OME Turkey project and is the basis for the project to enjoy geothermal fixed electricity prices. The Turkish government provides take-or-pay subsidy electricity prices within a specific period of time for new energy projects that meet the conditions. Geothermal power projects put into operation between July 1, 2021 and December 31, 2030 enjoy 9.45 cents to 11.55 cents. Fixed electricity price of cents/kWh for 15 years.
After the end of the above period, the developer will still own the power station for the remaining period of the energy production license and sell the electricity on Turkey's real-time power trading market.
The energy production permit can be checked on the official website of the Turkish Energy Market Authority. The Turkish government has formulated a priority purchase policy for new geothermal energy. Grid companies must give priority to purchase green electricity produced by geothermal power stations that have obtained energy production licenses. The electricity price is within the price range guided by the government. Geothermal power station operators do not need to Sign a separate power purchase/sale agreement (PPA) with the grid company.
On January 6, Mr. Cao Kejian, Chairman of Kaishan Holding Group Co., Ltd., inspected the power station under construction. The power station is expected to achieve COD by the middle of this year.
Post time: Jan-18-2024
