Turkey: Renewable Energy Law And Incentives Provided Under Renewable Energy Law

Last Updated: 15 March 2011
Article by Özge Özdeniz

The economical importance of Turkey lies beneath its geographical location. It is situated between where the three old continents, Europe, Asia and Africa meet. Increasing young population and growing economy and industry affects the dynamics of Turkey in a positive way. Such increase and growth requires more energy consumption. Since the fuel required for the operation of the conventional power plants is insufficient in Turkey, the best option to generate electrical energy is to utilize the rich renewable energy resources of Turkey. Moreover, the new trend in all over the world is to produce electrical energy from renewable energy resources, i.e. hydro, wind, sun, geothermal, biomass, biogas, in order to protect the environment and prevent pollution and global warming.

In the light of the aforementioned facts, laws and regulations are enacted in order to set forth the rules, rights, and obligations for generating electrical energy from renewable sources in Turkey. In 2005, Law on the Usage of Renewable Energy Sources for Generation of Electrical Energy ("RESL"), and Regulation on determination of Terms and Conditions regarding the issuing of Renewable Energy Source Certificate ("RESC Regulation") are enacted. Main objectives of RESL are to generalize the use of renewable energy for generating electrical energy, (ii) to protect the environment, (iii) to increase the variety of sources, (iv) to evaluate remedies, and to decrease the emission of greenhouse gases and (v) to improve the generation sector to realize such aims.

Terms and conditions regarding the protection, usage and determination of the geothermal resources shall be regulated by special regulations. The investors aiming to produce the electrical energy by using renewable energy sources, initially, shall obtain a "Generation License." Then, the investors granted by a generation license needs to be awarded with a Renewable Energy Source Certificate ("RES Certificate"), which identifies type of the source and enables the monitoring of the sale and purchase of electrical energy generated from renewable energy sources in domestic and international markets, by Electricity Market Regulatory Authority ("EMRA").

The procedures and principles for the grant of RES Certificate are set forth by the RES Regulation. Pursuant to RESC Regulation in order to apply for RES Certificate, the required documents have to be submitted to EMRA. Within 30 days following the application, EMRA shall present these documents to the Energy Market Regulation Board ("Board"). The Board will decide on the grant of the RES Certificate. If an investor is granted by a RES Certificate, the validity period for that RES Certificate will be one (1) year. The list of the investors which are awarded by RES Certificate are announced by the Board of EMRA including the production quantities, the production period and the cancellation of the licenses.

Preconditions, RESL provides a number of considerable incentives to promote investors who are awarded by RES Certificate. The most significant incentive is the purchase guarantee articulated under Article 6 of the RESL. According to the Article 6 of the RESL each retail seller shall purchase electrical energy from the facilities owning a RES Certificate which are operating for more than ten years. In other words, such buying guarantee is only provided to the renewable energy facilities operating in the relevant sector for less than 10 years.

EMRA publishes the amount of RES Certificated electrical energy which may benefit from incentives stated under the REC Certificate annually. The minimum amount of the RES Certificated electrical energy to be purchased by the retail sellers is the ratio of the amount of the electrical energy sold by the retailer seller in the respective year to the electrical energy sold by retailer sellers in the whole country.

The price applicable to the electrical energy purchased under the RESL for the current year shall be the electricity average wholesale price in Turkey of the previous year as determined by EMRA. However, such price should surpass 5 Euro Cent/kWh and should not exceed 5.5 Euro Cent/kWh. On the other hand, if the renewable energy generation investors would find the opportunity to sell the electrical energy that they produce for a higher rate in the market, they may sell their energy accordingly. Precondition of benefiting from the incentives stated under Article 6 is the commencement of generation of electrical energy by the facility before than Dec 31, 2011. However the RESC Law authorized the Council of Ministers to extend this period for utmost 2 years. Accordingly, the Council of Ministers has extended this period up to 31.12.2013. The draft law includes different prices for purchasing electricity and long period for the enforcement of the regulations under Article 6.

Another incentive is regulated under Article 7 of RESL. Investors who have established an isolated electrical energy facility and grid supported electrical generation facility up to 1000KW for supplying their own needs are not obligated to pay the remuneration for their specific projects i.e. final projects, planning, master plans, preliminary surveying and first auditing, prepared by either General Directorate of State Hydraulic Works or General Directorate of Electrical Power Resources Survey Development of Administration.

The Article 8 titled "Implementations related to Acquisition of Land" of the RESL provides another incentive regarding the lands with the nature of forest under the possession of the Treasury or under the ownership of the State. For such land to be utilized for the purpose of the facility roads for transportation and energy transmission lines up to the grid connection point, a permission may be granted to lease or to establish an easement right by Ministry of Environment and Forestry or Ministry of Finance; provided that the license holder shall pays for the use of such land. An eighty five percent discount over such remuneration applicable to the roads for transportation and energy transmission lines up to the grid connection point regarding fees, lease, and easement right shall apply in the first ten years of the investment and operation period with respect to the facilities which shall be commissioned by 31 December 2012.

In order to increase the production of electrical energy from the renewable energy sources, some changes and regulations are needed in the financial and legal structures of Turkey. Basically, governments must adopt new legislations which will provide the easiest procedure for the development, and mandatory on the infrastructural necessities, in favor of public, and remove the barriers of foreign investment investing in energy. It is as such better to say that not only some specific regulations on the renewable energy sector are necessary but more amendments are needed in the laws regarding the financial policies to bring a more liberal market out.

www.gsimeridian.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Kolcuoglu Demirkan Kocakli Attorneys at Law
Deliveli Turkmen Attorney Partnership
Kolcuoglu Demirkan Kocakli Attorneys at Law
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Kolcuoglu Demirkan Kocakli Attorneys at Law
Deliveli Turkmen Attorney Partnership
Kolcuoglu Demirkan Kocakli Attorneys at Law
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions