The long awaited, new Electricity Market Law, published on 30
March 2013, introduces a number of new features to Turkey's
dynamic electricity market, including the preliminary licence and
the incorporation of a new market operator, EPİAŞ. One of
the main purposes of this Law is to promote viable projects by
supporting "serious investors". To ensure this, the
preliminary licence regime was introduced.
A preliminary licence will be granted to those companies
intending to carry out generation activities. This preliminary
licence corresponds to the pre-construction stage incorporated into
generation licences under the previous regime. During the term of
this preliminary licence, the licence holder must obtain the
necessary permits, approvals and other similar required
documentation, including the ownership or usufruct right of the
area on which the generation facility is to be installed. Unless
these permits are obtained within the preliminary licence term,
which cannot be longer than 24 months except as extended by force
majeure events, no permanent generation licence may be issued to
the preliminary licence holder. The current holders of generation
licences who are in their pre-construction stage and/or have not
fulfilled their pre-construction stage requirements despite
expiration of the pre-construction period will be granted an
additional six month period to fulfil their obligations. If they do
not complete their obligations in this time frame, their generation
licences will be cancelled.
The introduction of a new market operator, EPİAŞ, is
also one of the most important elements of the new Electricity
Market Law. EPİAŞ, once it has been incorporated, will be
responsible for the operation of organized wholesale markets and
the financial settlement of activities realized in these markets.
The establishment of EPİAŞ, which is anticipated to be
realized within six months, is a very important step for the
creation of an electricity stock market that will help the
electricity prices to be more predictable. The markets on which
standardized electricity agreements accepted as capital market
instruments, and other electricity based derivative products that
are to be publicly traded, will be operated by the Borsa
İstanbul A.Ş, which is the exchange bringing all of the
exchanges currently operating in the market together.
Fully compliant, new secondary legislation for this new
Electricity Market Law will be issued within six months.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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