Turkey has also introduced feed-in tariffs for solar power, as well as increased remuneration for using PV components manufactured within the country. However, the authorities require an extensive amount of supporting evidence before granting these incentives. High levels of insolation of up to 1,500 kWh per square meter in south and south-east Turkey also create favorable conditions for photovoltaics, and the Turkish market is expected to undergo a significant upturn. In order to minimize currency risk for foreign investors, the feed-in tariffs below are quoted in US cents. The government in Ankara pays 13.3 US cents (around 10 euro cents) for every kWh of solar power generated. Added to this are incentives for using components manufactured domestically, which amount to as much as 6.2 US cents. While plants with a rated output of less than 500 kW do not require any approval, licenses are required for larger power plants, and the addition of new capacity up to 2013 was limited to 600 MW. Moreover, individual plants may not exceed capacities of 50 MW. The electricity demand in Turkey is set to double by 2020, meaning that shortages in the power supply are expected from 2017. 200 MW of new capacity are expected to be installed in 2013, with these figures set to rise to 600 MW in 2014 and 1.2 GW in 2015. In contrast, only 2 MW of capacity were installed in the country in 2012.
The Balkan states are yet to play a significant role in the large-scale installation market. Falling system prices could, however, prompt moderate growth in Bulgaria (2012: 767 MW) and Slovenia (117 MW). Both countries have introduced feed-in tariffs which are significantly higher than those in Germany and Italy. In Ukraine, large-scale solar power plants with capacities of 100 MW were installed, predominantly in the southern regions around Odessa and along the Black Sea coastline.
The future course of development in Poland is rather uncertain, as although the government in Warsaw is working on a law to promote renewable energy that also intends to include a feed-in tariff for solar power, this shall not be passed before the government’s 2013 summer break. As a result of the weak grid, connecting large-scale power plants is expected to prove particularly problematic.
It can generally be assumed that the market for MW-scale installations in Europe will become increasingly difficult. However, the direct marketing of solar power modeled on the USA’s Purchase Power agreements is paving the way towards independence from government subsidies. The first of Germany’s solar power market sectors (in particular roof-mounted systems) are expected to fall below grid parity in 2013/2014. In Italy and Spain, this milestone has already been reached for ground-mounted photovoltaic systems. However, large-scale photovoltaic installations do not compete with the electricity price paid by end customers (private households and/or companies), but rather with the market price of peak load power.