Turkey Unveils Draft Rules for First 1GW Offshore Wind Auction, Introduces Project Exit Option to Reduce Investment Risk

2026/6/30

Photo: Alparslan Bayraktar, Turkey's Minister of Energy and Natural Resources (Source: Ministry of Energy and Natural Resources of Turkey)

Turkey's Ministry of Energy and Natural Resources has released the draft tender specifications for YEKA OWPP-2026, the country's first offshore wind auction with a planned capacity of 1 GW. The proposed framework introduces a mechanism allowing developers to relinquish awarded project sites under specific conditions and signals the possible use of a negative bidding system, reflecting a more flexible approach designed to attract investment into the country's emerging offshore wind sector.

Under the draft rules, successful bidders would be granted 49-year development and operating rights for designated offshore wind areas, together with grid connection rights. The government has proposed a support scheme similar to a Contract for Difference (CfD), with a strike price ranging from US$70/MWh to US$110/MWh.

If multiple bidders offer the minimum strike price of US$70/MWh, the auction would move to a second competitive stage in which participants bid on a Contribution Fee—effectively a seabed concession payment—through a negative bidding process.

Developers Allowed to Return Projects Under Certain Conditions

One of the most notable features of the draft framework is a provision allowing developers to withdraw from awarded projects if technical assessments indicate that development would be commercially unviable.

Developers may return an awarded site if wind resource studies show an expected capacity factor below 40%, or if geotechnical and geological surveys conclude that seabed conditions would make construction exceptionally difficult.

The measure is intended to reduce early-stage development risk. In recent years, several mature European offshore wind markets have experienced deteriorating project economics after aggressive negative bidding led developers to commit to substantial concession payments.

The proposed 49-year concession period is also expected to improve project bankability by providing investors with a longer timeframe to recover capital expenditures.

Tender Framework Revised After 2018 Delay

Turkey previously planned a 1.2 GW offshore wind auction in 2018. However, the tender was postponed after stringent local content requirements and a price cap of US$80/MWh were widely viewed as barriers to market participation.

Since then, the government has strengthened cooperation with the Danish Energy Agency and Germany's Federal Ministry for Economic Affairs and Climate Action, while also advancing offshore wind development programs supported by the World Bank and European Union funding.

Four Aegean Sea Sites Selected

In May, the ministry identified four offshore zones in the Aegean Sea as candidate sites for the inaugural auction.

The selected areas include Saros Bay, waters off Gökçeada Island, Bozcaada Island, and Edremit. All four sites are located in waters less than 60 meters deep, making them suitable for bottom-fixed offshore wind development.

According to the World Bank, average wind speeds across the selected areas are estimated at 7–8 meters per second. While much of Turkey's surrounding waters are considerably deeper, the country is also regarded as having significant long-term potential for floating offshore wind.

The four sites also benefit from relatively easy access to Istanbul, offering favorable logistics and proximity to existing transmission infrastructure.

Turkey Targets 5GW of Offshore Wind by 2035

The draft tender documents do not specify a timetable for the auction.

However, İbrahim Erden, chairman of the Turkish Wind Energy Association (TWEA), has previously indicated that the first auction could be held between the second half of 2026 and early 2027. The tender is expected to cover at least 1 GW, with projects likely to deploy 15–20 MW-class offshore wind turbines.

Turkey aims to install 5 GW of offshore wind capacity by 2035 as part of its long-term renewable energy strategy.

In the onshore wind sector, the country added approximately 2.1 GW of new capacity in 2025, making it the second-largest market in Europe after Germany for annual installations.

Turkey also hosts manufacturing facilities operated by Enercon, Nordex, and Siemens Gamesa, while several Chinese turbine manufacturers are reportedly considering local production, further strengthening the country's wind energy supply chain.

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Turkey's proposed auction framework reflects lessons learned from mature offshore wind markets, where increasingly aggressive price competition has undermined project profitability. By allowing developers to return projects under defined technical conditions, the government is attempting to strike a balance between encouraging competitive bidding and reducing early-stage investment risk.

At the same time, the possibility of a negative bidding process once the minimum support price is reached means commercial pressure is likely to remain a defining feature of the auction. Backed by an established wind turbine manufacturing base and a strategic location linking Europe and the Middle East, Turkey is positioning itself as one of the region's most promising emerging offshore wind markets. While the first projects will focus on bottom-fixed technology, the country's extensive deep-water resources also provide considerable long-term potential for floating offshore wind development.

Sources: Turkish energy and natural resources ministry, Recharge