Energy Market Regulatory Authority
("Authority") has announced a proposal
to remove a financial incentive for unlicensed electricity
generation projects which use domestic products. The proposal is
intended to keep pace with recent developments in Turkey's
electricity market. The incentive would continue to be available
for other renewable projects. The public submission period for the
proposed changes closed on 21 March 2016 and the Authority is now
considering comments received.
Currently, unlicensed projects can benefit from certain
feed-in-tariffs (within the scope of Tariff No. I of Renewable
Energy Law) when selling surplus energy to authorized distribution
companies through the YEKDEM mechanism (Renewable Energy
Resource Support Mechanism). Under Tariff II, if mechanical or
electro-mechanical devices are used renewable projects are
manufactured in Turkey, a domestic product fee is added to the
feed-in-tariff prices, as an additional incentive. The incentive
ranges from USD $0.04 to $0.25 per kWh, depending on the type of
plant and device.
The amendments propose to cancel Tariff No. II (attached to the
Renewable Energy Law) for unlicensed projects. Tariff II would
continue to be available for qualifying renewable projects which
use domestic products (besides unlicensed projects). Tariff I would
continue to be available for unlicensed projects.
The proposed amendments include:
Application of Tariff No II attached
to the Renewable Energy Law for unlicensed energy projects would be
cancelled (Article 4(1) of Regulation on Documentation and Support
of Renewable Energy Resources is proposed for amendment).
References to application of Tariff
No. II attached to the Renewable Energy Law for unlicensed projects
would be removed throughout from the Regulation on Unlicensed
Energy Generation (Article 20(c) of the Regulation on Unlicensed
Energy Generation is proposed for amendment, while Articles 21 and
31 of the Regulation on Unlicensed Energy Generation are proposed
The calculation method for additional
incentives for unlicensed projects within the scope of Tariff No.
II of the Renewable Energy Law would be removed (Article 23 of the
Communiqué Regarding Application of Regulation on Unlicensed
Energy Generation and Communiqué Regarding Application of
Regulation on Unlicensed Energy Generation is proposed for
Please see this link for full text of the draft
Regulations (only available in Turkish).
Information first published in the MA | Gazette, a fortnightly legal update newsletter
produced by Moroğlu Arseven.
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