Turkey: Key Amendments To Regulation On Licensed And Unlicensed Electricity And New Regulation On Renewable Energy Zones


Through amendments introduced since last year to the Electricity Market License Regulation ("Licensed Generation Regulation")1 and the Regulation on Unlicensed Electricity Generation on Electricity Market ("Unlicensed Generation Regulation")2 followed by the new Regulation on Renewable Energy Resource Areas ("Renewables Zone Regulation")3 a new legal road map on licensed and unlicensed energy investments is in the making. In this article, amendments to the legislation concerning energy investments and significant amendments are addressed.

Licensed Generation

Preliminary License

The term of the preliminary license was granted by the Electricity Market Regulatory Authority ("EMRA") providing that the maximum term shall not exceed thirty-six (36) months. According to the amended Article 9 (1) of the Licensed Generation Regulation, EMRA is authorized to grant a different term for preliminary license for generation facilities built under the Renewables Zone Regulation.

Applications for Preliminary License and Amendments

With the amendment to the Article 12 (c) of the Licensed Generation Regulation, it is no longer required to submit wind and sun measurement reports based on the data collected within last five (5) years for preliminary license applications for generation facilities built under the Renewables Zone Regulation.

Further, according to the amended Article 18 (d), the main service unit in charge shall now conclude the preliminary license amendments to increase installed capacity up to the 10%, provided that the increased installed capacity shall not exceed 10 MWm. According to the amended text of Article 18 (d), the security and capital obligations under the Licensed Generation Regulation shall no longer be applicable for such amendments.

Restrictions on Share Transfers

Pursuant to amended Article 57 of Licensed Generation Regulation, share transfer limitation shall not be applied to (i) changes causing the indirect shareholders included to preliminary license of the preliminary license holder legal entity to become direct shareholder and changes causing all direct shareholders to become indirect shareholders providing that the shareholding proportions remain the same, and (ii) changes occurred in the direct or indirect shareholder structure of the preliminary license holder legal entity included to privatization program in consequence of a sale or assignment of shares held by public authorities.

Unlicensed Generation

Exemption to Limitation of Installed Capacity

According to amended Article 7/6 under the Licensed Generation Regulation, in the event it is decided by Turkish Electricity Transmission Corporation (TEİAŞ) that any solar or wind power generation facility could generate uninterrupted power through technological enhancements, license applications for such generation facilities shall be excluded from the requirement of maximum installed capacity of 1 MW.

EMRA's Discretion in Cancelling Connection Agreements

Previously it was governed that the completion terms of the provisional approval process for generation facilities to connect to the network starts from the execution date of connection agreement. In the event of non-completion of such facilities due to any reason other than force majeure events, the connection agreements and water utilization rights would become null. However, under the amended Article 24, EMRA is granted a wide discretional power to nullify connection agreements on the grounds of "other occasions deemed appropriate by EMRA" as quoted from amended text of the Article 24.

Exemptions to Share Transfers

Except for the share transfers as a result of inheritance, it was prohibited to transfer of shares of unlicensed generation facilities equal or below 1MW between the date of application and the date of provisional approval. With the amendment under Article 31 (20) this share transfer restriction shall not apply in the exceptional (permitted) cases of (i) changes in the shareholding structure of publicly listed legal entities due to their publicly listed shares and changes in the shareholding structure of legal entities which have publicly listed shareholders due to the publicly listed shares of such shareholder(s), (ii) direct or indirect changes in the shareholding structure of the related legal entity due to exercise of pre-emptive rights of the existing shareholders of such legal entity and thus transfer of shares is facilitated, (iii) indirect changes in the shareholding structure of the related legal entity as a result of the changes of the shareholding structure of their foreign (abroad-based) shareholders, (iv) direct or indirect change in the shareholding structure of the related legal entity due to the public offering of their shares or public offering of the shares of the legal entities who are direct or indirect shareholders of such pre-license holder entities.

Mergers of Unlicensed Generation Facilities

With the amendment of Article 31 (18) of Unlicensed Generation Regulation now statutorily subjects the merger of generation facilities with (i) another unlicensed generation facility that is fully owned by the applicant generation facility, or within the body of (ii) an unlicensed generation facility that fully owns the applicant generation facility, conditional upon that all facilities involved in the merger shall have each received provisional acceptance.

Regulation on Renewable Energy Resource Areas ("Renewables Zone Regulation")

The Regulation on Renewable Energy Resource Areas ("Renewables Zone Regulation") governs the procedures and principles for identification, evaluation and utilization of renewable energy resource areas ("RESA").

General Directorate of Renewable Energy ("General Directorate") shall be the competent authority for the technical and administrative assessment for the identification of RESAs. Land sites identified by the Turkish Treasury and other public land sites as well as private property may be allocated for RESAs. The Ministry of Energy and Natural Resources ("Ministry") applies criteria such as type, potential and electricity costs per unit for the identification of RESAs and is the ultimate deciding authority to allocate RESA for a prospective investment.

The announcement of tender for the right of use in the identified RESAs for the assignment of connection capacity to investors shall be published in the Official Gazette and in the web site of the General Directorate.

Only those entities, who undertake to (i) locally manufacture equipment announced by the Ministry, (ii) use locally manufactured equipment and (iii) bear the conditions determined in the Electricity Market License Regulation in order to apply to engage in generation activities in a RESA provided that they submit all required information and documentation to the Ministry.

Legal entities that have fulfilled the criteria determined and announced by the Ministry are authorized to participate in the tenders for the assignment of connection capacity of a RESA. The tender shall be held as reverse auction starting from the maximum electricity purchase price set by the Ministry for kilowatt-hour per each RESA. Tender shall be awarded to a participant offering the lowest price. The entities awarded the tender shall then be invited to sign the right of use agreement.

Pre-license is an obligation for the investors to engage in electricity generation activities in RESAs. The term of the pre-license shall not exceed 24 months except for force majeure events. However licenses shall be granted for a maximum term of 30 years.

The generated electricity shall be sold during the term specified in the tender specifications over the price determined in the right to use agreement and shall be subject to Regulation on Certification and Support of Renewable Energy Resources ("YEKDEM Regulation"). The term for purchase of electricity mentioned in the tender specifications shall commence upon the execution of the right to use agreement. No additional incentives under Law on the Use of Renewable Energy Resources for Electricity Generation (No. 5346) shall be applicable to the electricity generation facilities constructed within the scope of right to use agreement.


1. Regulation on the Amendments to the Electricity Market License Regulation entered into force and published in the Official Gazette dated 22.10.2016 (No. 29865).

2. Regulation on the Amendments to the Regulation concerning Unlicensed Electricity Generation on Electricity Market entered into force and published in the Official Gazette dated 22.10.2016 (No. 29865).

3. The Regulation on Renewable Energy Resource Areas entered into force and published in the Official Gazette of October 9th, 2016 (No.29852).

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.