Turkish energy exchange to launch green certificates

Turkish energy exchange Exist aims to launch green certificates by the end of this year to support renewable energy production, it said.

Exist is working with energy regulator EPDK to introduce a centralised platform for green certificates, it told Argus. The platform will be open to licensed plants at the launch, implying that solar plants — 97pc of which are unlicensed — will be mostly excluded.

Exist has explored existing European platforms that sell guarantees of origin (GOOs), including Croatia's Cropex and Paris-based Epex for French GOOs. It plans to become the sole operator and issuer of green certificates, holding auctions on a monthly basis, but EPDK is also considering an option that includes a separate platform where renewable operators can issue and trade certificates.

Revenue from the sales of green certificates could be used to finance state subsidies for renewable power that are part of the Yekdem feed-in-tariff scheme. But EPDK is also exploring the possibility of directly distributing part of revenue to renewable plant operators.

Demand for green certificates is expected to come from regulated distribution firms as EPDK is looking to introduce a green tariff for regulated consumers. Renewable operators within the Yekdem scheme could also buy certificates for their own consumer portfolio, Exist said.

Green certificates are planned to be fully compatible with European GOOs as part of the second phase of the launch. But the second phase is unlikely to be launched before late 2021, Exist said.

By Bilal Muftuoglu