Renewable Energy Under The Electricity Market Law

Contact: Att. Berna Asik Zibela; Erdem & Erdem (Turkey - TAGLaw)

Under the "Law on Use of Renewable Energy Resources for Electric Energy Generation"[1] ("Renewable Energy Law"), renewable energy resources are listed as hydraulic, wind, solar, geothermal, biomass, biogas (including landfill gas), wave, current and tidal energy, which are non-fossil energy resources.

The new Electricity Market Law[2], which entered into force on March 30, 2013 ("EML") contains some new provisions regarding renewable energy resources.

In this article, we will review the provisions of the EML specific to renewable energy resources, including solar and wind energy.

License Terms and Generation Activity based on Renewable Energy Resources

One of the most important provisions regarding renewable energy resources under the EML is related to licensing. Pursuant to the general provisions on licensing, legal entities, which will conduct market activities, shall obtain separate licenses before starting their operation, for each activity and for each facility when those activities will be conducted at different facilities. However, the EML sets forth an exception for generation facilities based on renewable energy resources under Article 5, paragraph 2(f). According to this provision, generation facilities based on the same type of renewable energy resources, which are located at the surface of more than one premises, can be considered under one generation license provided that they are connected to the system from the same point. The implementation terms and conditions of this provision will be determined by the Energy Market Regulatory Authority ("EMRA").

Article 7 of the EML sets forth the provisions related to generation activities based on renewable energy resources. According to this article, the legal entities generating electricity based on renewable energy resources can obtain a "renewable energy resource certificate" from the Ministry of Energy and Natural Resources ("Ministry"). In that regard the Ministry adopted the Regulation on Certification and Support of Renewable Energy Resources[3] ("Certification Regulation"). And the detailed rules on the renewable energy resources certificate ("YEKBEL") and the support mechanism for the renewable energy resources ("YEKDEM") are regulated in this Certification Regulation.

The EML sets forth some incentives for electric generation activities based on renewable energy resources. Pursuant to Temporary Article 4 of the EML, facilities generating electricity based on renewable energy resources may apply to the relevant ministry for obtaining the necessary permit, right of lease or usufruct of immovable properties which are qualified as forest areas or owned by the treasury, or under the possession of the state in order to utilize those areas for energy transmission lines. For generation facilities which are already in operation or that will have begun their operation until December 31, 2020, the rents or fees of such aforementioned areas shall decrease 85% during the first ten-years of investment or operation.

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