Turkey: Turkey’s Unlicensed Solar Energy, Investment Opportunities And The Application Procedures

By means of its geographical location, Turkey appears to be one of the sunniest countries in Europe, with the calculated solar radiation level quite similar to Portugal and Spain. In order to reduce the natural gas dependency from northern countries, Turkey has taken very big steps for energy market privatization and renewable energy investments. Thus, in last 10 years, energy politics and legalislated incentives aim to direct investors to invest on renewable energy generation with high potential of profits.

2 years ago, Energy Minister Taner Yıldız reportedly announced that the limit for unlicensed solar energy generation has been enhanced from 500 KW to 1MW. The primary idea behind increasing the unlicensed production limit seems to be to charm low-budgeted investors to get into Turkey Energy Market. In past two years after the announcement, 1275 of total number of applications have been made to ''EMRA'' (Energy Market Regulatory Authority) in order to commence unlicensed facility establishment and generation.

Even there is no need to get a generation license for facilities up to 1MWh, investors still obliged to take few steps for obtaining the right to generate and sell energy.

General Principles to Establish an Unlicensed Solar Power Plant

There are two main legal resources setting down the rules for unlicensed solar power plants' procedure. According to Energy Market Regulation and Regulation on the Unlicensed Electricity Generation on the Electricity Marketlegal entities are allowed to build up to 1MW generation power plant with an exemption of license and establishment of a company. Regulation defines investors as:

  • Real and legal persons intend to generate electricity from renewable energy resources in micro cogeneration facilities, or generation stations with a maximum power of 1 MW installation,
  • Real and legal persons who will build a cogeneration facility that exceeds the limit laid down under the Regulation on Increase of Productivity on the Utilization of Energy Resources and Energy, in order to meet their own needs.

Related the law, investors are free to sell all the generated energy to the electric utility. Moreover, they have also have options not to connect to national distribution system in order to fulfill their energy requirements or only to sell the surplus energy from the consumption to the electric utility.

When deciding to consume all of the generated energy, as a principal only one generation facility based on renewable energy sources can be established for one consumption facility. However, with another application to the distribution company, it may be applied for more than one generation facility if there is a consumption rate needing more than one energy generation facility.

The Connection Application to the Distribution System

In order to start up the process to connect to the national distribution system, attendants (renewable energy investors) shall fill out the Unlicensed Generation Connection Application Form, which is attached to Regulation on the Unlicensed Electricity Generation, and also a land registration or a rental contract of the area where the establishment will be made; and a technical connection scheme provided from a consultant company are required.

Application shall be made to the relevant territorial distribution company, authorized by the authority. Applications shall be assessed by the distribution company under the following criteria: ''feasibility of the facility, legally permitted areas (compliance of the physical development planning law codes), eligibility of generation and most importantly transformation capacity of the relevant system connection point.''

Elaborately, every connection point has a capacity to transmit electricity to the national distribution system. If the transmitted energy capacity reaches up to the limit, no more applications shall be confirmed regarding the connection area.

Applications shall be assessed and concluded within the 20 days of the next month when application has been made. In case of a lack of one of documents, authorized distribution company shall give an additional 10 days to fulfill the obligations.

According to Regulation, distribution companies are obliged to accept the application unless there is a primary deficieny of the provided documents by the investor. Denial of an application is only possible if there is void according to Regulation provisions.

Following the acceptance of application, distribution company shall send a ''Connection Invitation Letter'' for the confirmation. In 90 days after the letter received, investor shall provide a generation facility project to the distribution company. After they provided documents, investor and distribution company shall sign a ''Connection Agreement'', following that distribution company Compatibility Report. At this point investor is obliged to start and finish physical building process.Consequently, right after the construction is finished, investor and distribution company sign a ''System Usage Contract'' in order to start electricity commercial.

Sell or Use

As said above, unlicensed generated energy can either be used for investor's own needs or be sold to the energy pool via Energy Distribution Company at the fixed price of 13.3 Dollar Cents/kWh.

Energy Market Regulatory Authority determined the highest purchasing tariff for solar energy. Investors should keep it in mind that generated energy cannot be sold in free energy market without a retail-sale or a wholesale license. However the fixed price of the Authority appears to be quite sufficient to compensate all of the investments in 8-9 years.

Incentives Regarding Solar Energy

Incentives for renewable energy investments are set forth in YEKDEM Regulation. (Regulation on Documentation and Support of Electricity Generation from Renewable Energy Resources, law no 28782)

According to the Regulation, Authorized Distribution Company guarantees the investor to purchase electricity from the highest fixed price for 10 years, which leads this investment highly profitable without bearing any risks.

Moreover, investors bound to YEKDEM, are totally exempted from System Usage Taxes, Transmission Expenses, Retail Service Prices.

Domestic equipment and material usage for a solar energy facility is also appreciated and incent by YEKDEM. In accordance with Regulation Article 6/B, Authority makes an incentive pay in favor of the investor for 5 years by calculating the amount with respect to YEKDEM Tariffs considering sold energy to the national system. YEKDEM is subject of a trade barrier by European Commission and it has been reported that due to the Commission has received several complaints from EU business active in this sector as well as from several member states. The Commission has regularly raised this issue with the Turkish authorities during the different CUCJ meetings. The measure has also been raised with the European Investment Bank in the context of EIB's programmes for renewable energy and energy efficiency.

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
Deliveli Turkmen Attorney Partnership
Kolcuoglu Demirkan Kocakli Attorneys at Law
Ozkan Law Office
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
Deliveli Turkmen Attorney Partnership
Kolcuoglu Demirkan Kocakli Attorneys at Law
Ozkan Law Office
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