Turkey: Summary of 2016 Amendments On Turkish Legal Framework Of Unlicensed Electricity Generation

With an amendment regulation published in the Official Gazette dated March 23, 2016 and numbered 29662 (amendment regulation will shortly be referred to as the "AR"), the Energy Market Regulatory Authority ("EMRA") has brought ground-breaking changes to the unlicensed electricity generation in Turkey, whose principles are set forth under the Regulation on Unlicensed Energy Generation in Electricity Market (published in the Official Gazette dated October 2, 2013 and numbered 28783) (this regulation will shortly be referred to as the "UER"). The amendments entered into force on March 23, 2016 and have made very substantial and crucial changes to the legal framework and practice in the unlicensed energy generation sector. The substantial changes brought by the AR to the UER mainly relate to (i) capacity allocation restrictions, (ii) transfer and restructuring restrictions and (iii) application and announcement mechanisms. These changes will be summarized in bullet points below.

Capacity Allocation Restrictions

  • Per the new clause brought under UER Article 6/10, the maximum capacity allocation provided to each person/entity for wind/solar projects per each substation center has been set as 1 megawatt ("MW"). This restriction also covers the legal entities in which the relevant persons directly or indirectly hold shares or exert control.
  • Previously, a person/entity was able to apply for an unlimited number of unlicensed (up to 1 MW) wind/solar energy projects in any given substation area. This allocation restriction prohibited the previous practice of developing multiple unlicensed projects (e.g. 10 projects of 1 MW – 10x1 MW unlicensed projects) in any given area.
  • The previous practice was sometimes exercised in a manner that would render the electricity licensing meaningless, since the investors preferred to invest in unlicensed projects which have less formalities rather than the projects with electricity generation licenses. The previous practices arising from the old regulation also created intermediary groups who were simply applying for projects for solely selling them (without a will to invest) to other investors and benefit therefrom. It is expected that the amendments will terminate such market practices.
  • Per UER's new Provisional Article 9, the wind/solar projects for which a call letter has been obtained are deemed exempt from such allocation restriction.
  • Per the provision brought under UER Article 6/12, capacity allocation in wind/solar projects has been made proportional to the consumption amount. According to this restriction, capacity allocation to be made to any generation facility can at the most be 30 times of the contractual power in the related consumption facility (i.e. if the contractual power in the related consumption facility is 10 kW, the maximum generation capacity can be 300 kW). This provision is brought to promote the self-generation concept aimed under unlicensed generation regime and scythe the excessively commercial uses of the system.
  • Provision brought under UER Article 31/21 substantially restricts involvement of the distribution companies (as well as the entities under their control, their employees, shareholders and relatives of the real persons counted herein) in unlicensed energy generation. Accordingly the above-mentioned persons/entities have been limited with a 50 kW limit for unlicensed electricity generation from wind/solar sources. Since the distribution companies have a key role in all parts of the unlicensed energy generation processes, this provision is intended and expected to enhance competition, transparency and fair practices in the market.
  • Provision brought under UER Article 7/11 grants a more preferred status to pre-license and license applications in detriment of the unlicensed energy applications in case the application areas match.

Transfer and Restructuring Restrictions

  • Although generally restricting facility transfers before temporary acceptance of the facility, The UER's scope has previously not been able to restrict the transfer of wind/solar projects through transfers of SPV shares. Many investors have taken over the projects at an early stage through acquisition of the SPVs.
  • With a provision brought under UER Article 31/20, share transfers in the SPVs has been prohibited through a penalty of cancellation of call letters. Accordingly, transfers before temporary acceptance of the facility have been strictly prohibited with the only exception being the cases of inheritance.  
  • Per UER Article 31/18, restrictions have been brought in respect to the restructuring transactions (mergers and divisions) of the project SPVs.
  • However, there is a lack of clarity in the UER as to the legal regime applicable to the projects which are exempt from allocation restrictions under UER Provisional Article 9. It is yet unclear whether the exempt multiple MW projects (i.e. 10x1 MW projects in the same substation area) may be transferred to third parties collectively. EMRA is expected to provide a council decision in this respect.
  • Various provisions brought by amendments under UER Article 31 also provide for notification of the grid operator in case of share transfers and certain restructuring transactions.

Announcement and Application Mechanisms

  • Amendments in UER Article 7 bring new documentation to be submitted in the initial unlicensed electricity generation project applications to the grid operators. These documents generally consist of (i) Technical Assessment Form from the General Directorate of Renewable Energy, (ii) application outline with coordinates and (iii) documents showing shareholding structure and control relations. The first two were previously required to be submitted at the TEDAŞ project approval stage instead of the first application.
  • Amendments in UER Article 6 set forth that new capacities shall be announced in each April, August and December by TEİAŞ that capacities which have been previously full but now made available shall be announced in the first workday of the subsequent month. Furthermore, a 3-months period has been provided in between the date of announcement and start of the application period. These changes aim to increase transparency and provide a healthy preparation period.
  • Amendments in UER Article 9/2 provide for TEDAŞ announcement of project approval applications and results.
  • Amendments in UER Article 31/5 bring a strict regime for announcements of distribution companies on applications and assessment results. Per the amendments, a uniform format and content determined by the EMRA has been adopted for distribution companies' announcements. The distribution companies shall be making these announcements on a monthly basis at the 25th day of each month.


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.

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”

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
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.