In 2023, the length of Power Purchase Agreement (PPA) for small hydro energy in Türkiye stood at 12 years, showing a progressive increase over the last decade. The PPA length remained consistent at 10 years from 2013 to 2019. A notable shift occurred in 2020 with a year-on-year increase of 10%, elevating the PPA length to 11 years. Stability continued till 2023, experiencing a further 9.09% rise. The five-year CAGR leading up to 2023 was 3.71%, indicating steady growth.
Forecasted data from 2024 to 2028 predicts a gradual increase, reaching 14 years by 2028. The anticipated five-year CAGR from 2023 to 2028 is 3.13%, with an overall growth rate of 16.67% in this period.
Future trends to watch for include:
- Policy changes affecting renewable energy incentives.
- Advancements in hydro energy technology that could influence PPA durations.
- Environmental regulations impacting hydro power projects.
- Market dynamics such as demand for renewable energy and investment patterns.
