Turkey: Renewable Energy Under The Electricity Market Law

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 Resources3 ("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.

Activities based on Renewable Energy Resources without a License

Article 14 of the EML regulates the activities which can be conducted without a license. Some of those activities are based on renewable energy resources. According to this article, generation facilities based on renewable energy resources,

  • the installed capacity of which is maximum 1 mW, and
  • which utilize all of their generated energy without giving it to the connection or distribution system and which have the same measurement point of generation and consumption,

can conduct their activities without a license.

The Council of Ministers is authorized to increase the installed capacity of renewable energy plants to operate without a license to 5 mW.

In accordance with Article 14 of the EML, the Ministry adopted the Regulation on Unlicensed Electric Generation4 ("Unlicensed Generation Regulation").

According to Article 5 of the Unlicensed Generation Regulation, generation facilities based on renewable energy resources, the installed capacity of which is maximum 1 mW or below the increased installed capacity by the Council of Ministers are not obliged to obtain a preliminary license or license and to incorporate a company. This provision is in compliance with Article 7 of the Electricity Market Licensing Regulation5 ("Licensing Regulation").

Provisions on Solar and Wind Energy Resources

Article 7 of the EML stipulates the terms of preliminary license application for generation facilities based on wind and solar energy. According to this article, in the event that an application is made by the owner of the immovable property on which the generation facility will be established, other applications are not taken into consideration for evaluation. During the applications, it is necessary to submit wind or solar measurements for a minimum term of one year, which have been obtained within the last three years and in compliance with the standards. By taking into consideration the technologies used by TEIAS6 and the relevant distribution company; only the applications, which receive positive opinion for compatible connection, shall be subject to evaluation. In the event that there is more than one application, which require connection to the same connection point or same connection area, a contest shall be organized for selection of the applicants who offer and undertake to pay the highest total contribution fee per unit megawatt.

Provisions on Hydroelectric Power Plants

Besides general provisions regarding the renewable energy resources, the EML also regulates a few provisions specific to the hydraulic resources.

As is known, signing a water utilization right agreement is required to obtain a license for electric generation activities based on hydraulic resources. Pursuant to Article 29, for the applications for signing a water utilization right agreement, the General Directorate of State Hydraulic Works ("DSI"7) is entitled to determine the legal entity, which will sign the water utilization right agreement. In case of more than one application for one resource, the legal entity, which offers to pay the highest hydroelectric resource contribution fee, shall be selected for signing the agreement and notified to EMRA. The contribution fee shall be paid every year by the end of January and recorded as revenue to the DSI's budget.

Temporary Article 15 of the EML sets forth a provision specific to idle hydroelectric power plants. According to this provision, the right holders of the hydroelectric power plants; which generated electricity before the previous Electricity Market Law No: 46288 ("Previous Law") entered into force, and later on, stopped their activities or could not connect to the distribution system, may sign a water utilization rights agreement with DSI with a fee of TRL 0,01/kilowatt-hour without requiring an announcement by DSI, provided that an application shall be made within six months as of the date the EML entered into force and the application area does not coincide with already existing projects.


As reviewed within this article, there are very few provisions in the EML specific to renewable energy resources. Mostly, those provisions regulate either very general issues or temporary issues. Detailed rules have been regulated with secondary legislation and there is more than one regulation setting forth the applicable provisions on generation of electricity based on renewable energy resources.

The exemption set forth under Article 5 paragraph 2(f) of the EML, related to the activities of several generation facilities based on renewable energy resources under one license, may be considered as a positive development for market progress. In addition, increase of the maximum limit for the activities without requiring a license to 1mW is also a significant revision.


1. Official Gazette 18 May 2005, no. 25819.

2. Official Gazette 30 March 2013, no. 28603.

3. Official Gazette 1 October 2013, no. 28282.

4. Official Gazette 2 October 2013, no. 28783.

5. Official Gazette 2 Novemberr 2013, no. 28809.

6. The abbreviation is for Turkish Electric Transmission Joint Stock Company. It is the only company in Turkey which conducts transmission activities with a transmission licence.

7. The abbreviation is well known and accepted term in Turkish for the General Directorate of State Hydraulic Works.

8. Official Gazette 3 March 2002, nr. Reiterated 24335

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.

Similar Articles
Relevancy Powered by MondaqAI
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
Related Articles
Up-coming Events Search
Font Size:
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
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
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.


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.


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