Turkish electrical energy market has recently undergone
significant changes that are introduced by the Law Amending the
Electricity Market Law No. 6446 ("EML")
and Certain Other Laws ("the Omnibus
Bill") that was published in the Official Gazette
dated 17.06.2016 and numbered 29745. Significant amendments also
have been made to the Law No. 5346 on the Use of Renewable Energy
Resources for Electricity Production
("REL") and the Law No. 3154 on the
Organization and Functions of the Ministry of Energy and Natural
Resources. Within the context of amendments to the EML, a new
procedure for privatising certain assets of the Electricity
("EÜAŞ"), or its affiliates,
as appropriate for the purposes of developing power plants based on
renewable energy resources and coal of local origin has been
introduced. Moreover, retail sale companies are now empowered by
law to charge their customers special fees for technical and
non-technical line losses. Apart from the foregoing, some of the
rules governing licensed and unlicensed generation have been
amended. Some of these major changes in law are;
Wind and solar measurement data for pre-license applications is
now required to be obtained for the last 5 years preceding the
subject application. As an exception to the above measurement
requirement, if any wind or solar power plant was proposed to be
installed on any designated "renewable energy resource
area" as defined in the regulation, then no pre-license
application phase measurement data shall be required.
In case there are multiple applications for connecting to the
same connection point and/or to the same connection site within the
grid, Turkish Electricity Transmission Corporation
("TEIAS") will now organize a
competition for determining the winner who will qualify for
connecting to the grid up to the announced capacity. In determining
the winner, the lowest electricity sale price offered over the
legally permissible maximum sale prices i.e., the feed-in tariffs,
as set forth under Annex I of the REL will be taken as a basis.
Previously, the winner of the competition was the applicant who
proposed to pay the highest total contribution fee per megawatt to
TEIAS within a maximum period of 3 years following the
To underpin the latest amendments which were made to the
Unlicensed Electricity Generation Regulation on 23 March 2016, it
is stipulated that shareholders in unlicensed generation companies
operating wind or solar power plants of maximum 1MW capacity, each
are prohibited from doing any share transfers until the provisional
acceptance of the subject power plant by the Ministry of Energy and
Natural Resources. In case of a breach of this prohibition, the
invitation letter sent to the generation company concerned for
executing a grid connection agreement with the related network
operator may be cancelled.
Prohibitions from applying for unlicensed wind and solar power
generation have been introduced in respect of those persons and
entities who are described by law as being
"related" to distribution companies or to
designated supply companies, as the case may be, which operate in
any given distribution region.
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