The Law No. 5346 on the Utilization
of Renewable Energy Resources for the Purpose of Generating
Electrical Energy was amended on 8 January 2011. The amended Law
No. 5346 envisages bonus tariffs for the license holder legal
entities that use locally produced mechanical and/or
electro-mechanical components in renewable energy facilities. Such
bonus tariffs differ according to the type of the renewable energy
and the component manufactured from USD 0.004 to 0.024 per kWh for
a five-year term from the operation date of plants provided that
they start producing energy before the end of 2015 and they are
registered in the Renewable Energy Support Mechanism defined in the
Law No. 5346 (Please see our article on "Turkey: Incentives
for Renewable Energy" published on 28 April 2011 on Mondaq).
As an implementing regulation, the regulation on the Local
Manufacture of the Components Used in the Generation of Electricity
from Renewable Energy Resources (the "Regulation") was
published in the official gazette numbered 27969 and dated 19 June
The Regulation stipulates
principles, standards and certification processes regarding locally
manufactured mechanical and/or electro-mechanical components. As
per the Regulation the locally manufactured components should have
the following documents:
Manufacture Status Document which shows that the component is
manufactured in Turkey which will be prepared by a certified public
accountant and certified by the Chamber of Industry and/or Chamber
of Commerce and Industry with which the system supplier or
component supplier is affiliated. The duration of this document is
five years as of the issuing date.
Manufacture Certificate which shows that the component is
compatible with the international or national standards. The
certificate must be prepared by an international accrediting agency
which signed a mutual recognition agreement with International
Accreditation Forum (IAF) according to the TS EN 45011
"General Standards for the Certification Institutions which
Perform Product Certification".
The aforementioned documents should
be obtained by the component supplier or the system supplier from
the relevant authorities and be submitted to the license holder
legal entity which purchases the component from the component
supplier or the system supplier. The license holder legal entity
which aims to benefit from the bonus tariffs regarding the locally
manufactured components must submit such documents to the Ministry
of Energy and Natural Resources (the "Ministry") or
another institution commissioned by the Ministry.
A commission composed by the
Ministry authorities, representatives of the license holder and
constructor of the plant shall control whether a component used in
the plant has a Manufacture Status Document during the provisional
acceptance of the plant. Within 15 days following such control, the
Ministry shall inform the Energy Market Regulatory Authority (the
"EMRA") on the bonus tariff to be applied to the license
holder legal entity for the locally manufactured component.
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.
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Turkey has amended the Electricity Market Law numbered 6446 to promote use and security of domestic energy resources. Under the amendments, planned capacity mechanisms must give priority to local energy sources.
Turkey's energy regulator previously ruled (decision numbered 5709, dated 30 July 2015) that a total capacity of 2,000 MW would be reserved in the period up until 2020 for wind power pre-license applicants to connect to the grid.
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