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Renewable Energy Supply Agreements Increase Competitiveness in Industry
16 Aug 2025SHURA Energy Transformation Center Director Alkım Bağ Güllü stated that Renewable Energy Supply Agreements (YETA), which enable new investments without burdening the public budget, increase competitiveness in exports.
Güllü told the AA correspondent that the importance of market-based financing models has increased with the decrease in renewable energy costs, and at this point alternative financing mechanisms such as YETA have come to the fore.
Emphasizing that the PPA model, which is implemented as long-term energy purchase agreements between producers and the private sector, provides ease of financing to producers and low-emission energy to buyers, Güllü said, "PHP stands out as a market-based financing tool that does not require public support for projects in cases where other policy mechanisms cannot provide sufficient flexibility or there are difficulties in achieving renewable energy targets." he said.
Güllü stated that it is rapidly becoming widespread in Europe, especially in Spain, Germany and Scandinavian countries, in addition to the USA, in line with corporate carbon reduction targets.
Noting that YETA is also used by technology and industrial giants such as Amazon, Meta, LyondellBasell and Google, Güllü said, "Many companies around the world have signed wind and solar energy-based YETA with a total capacity of 198 gigawatts since 2008. 20.9 gigawatts of these agreements announced in 2023 were in the American continent and 15.4 gigawatts in Europe." He made his assessment.
Güllü also stated that in neighboring Greece, giving priority grid connection to farmers and industry has made the practice widespread.
Noting that renewable energy plays a critical role in Türkiye's 2053 net zero target, and that there is a capacity potential of 140 gigawatts in wind and 220 gigawatts in solar with appropriate policies and regulations, Güllü said, "To achieve this goal, market-based mechanisms such as YETA should also be activated in addition to public supports." He used the expression.
Güllü stated that in order for the model to become widespread, regulatory deficiencies should be eliminated, market and price predictability should be increased, publicly supported guarantee mechanisms against exchange rate risk should be developed and consumers should be encouraged.
Güllü stated that YETA will contribute to energy supply security and said:
"The commissioning of new capacities will strengthen supply security by reducing energy imports and make a positive contribution to the macroeconomic balance. In addition, if the capacity of interconnection lines is increased and electricity produced from renewable energy sources can be exported within the scope of cross-border trade, both regional energy trade can be revitalized and the feasibility and income predictability of these projects can be increased."
Cost predictability and export advantage
Güllü explained that in the PPA model, which offers long-term energy cost predictability to industrial organizations, the parties negotiate the purchase prices with the wholesale electricity sales price predictions that will occur throughout the contract process and determine one of the fixed, indicative or mixed pricing methods with long-term market predictions.
Emphasizing that the agreements in question provide access to certifiable clean energy at predictable prices, Güllü said, "YETA provides cost stability and risk management advantages for industrialists by strengthening the sustainability performance of exporting companies and increases the competitiveness of the industry."
Güllü drew attention to carbon footprint reduction, which has become important for exporting industrial organizations, and said, "YETA can contribute to these targets, which are not legally binding. With YETA, exporters can prove that they provide the electricity they consume from renewable sources." he said.
Güllü informed that, in this context, YETA provides flexibility and supply continuity to small and medium-sized organizations compared to self-consumption investments, and offers a long-term and strong commitment, although it is less flexible than renewable energy certificates.
Ease of access to finance
Noting that the mechanism may also facilitate access to financing for renewable energy investors, Güllü said, "The predictability of PPAs with their long-term fixed price structure may enable financing institutions to view the projects as less risky and reduce their collateral expectations." he said.
Güllü emphasized that the introduction of carbon pricing for electricity generation may also increase the demand for PPAs and said, "Consumers who obtain electricity from fossil fuel sources may become vulnerable to price fluctuations due to changing international fuel costs and anticipated carbon taxes. On the other hand, electricity provided from renewable energy sources through PPPs can provide more predictable costs and increased competitiveness for all sectors, especially the industrial sector." He said.
Source: Anadolu Agency
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