Turkey: Generating Electricity From Renewable Energy Resources Under Turkish Law

Last Updated: 30 April 2009
Article by Şebnem Işık and Ozan Karaduman

After the oil crisis in 1973, greater interest was directed towards renewable energy resources. At that time, the aim was to focus on alternative energy resources in order to be less dependent on oil as an energy resource. After it has been proved that the burning of fossil fuels has a negative impact on climate change, the importance of renewable energy resources has been widely recognized throughout the world with an effort to prevent the undesirable effects of pollution both from burning fossil fuels and from nuclear waste products. The industrialized countries have been making plans and implementing projects to support and increase the use of renewable energy resources for a considerable time. Governments all over the world have been carrying out different support programs to ensure the increase in the electricity production from renewable energy resources and to develop and maintain investors' confidence in this area, by providing investors engaged in the production of energy from renewable energy sources with tax exemptions or reductions, investment aids or granting a guarantee of origin. The promotion of generating electricity from renewable energy resources has also become the priority of the European Union (the "EU") countries. The EU countries have undertaken that at least 12% of their gross domestic energy will be produced from renewable energy resources until 2010, by the adoption of an EC Directive on the promotion of electricity produced from renewable energy resources1.

Turkey has recently begun to take actions to encourage and increase the production of electricity through the use of renewable energy resources. For this purpose, the Law on Utilization of Renewable Energy Resources for the Purpose of Generating Electrical Energy dated May 10, 2005 and numbered 5346 (the "Renewable Energy Law") was enacted. Furthermore, a proposal of Law on the Amendment of the Renewable Energy Law (the "Proposal") has been submitted to the relevant commission of the Grand National Assembly of Turkey. We will analyze below the noteworthy points of the Renewable Energy Law and the significant amendments to be introduced by the Proposal.

The Renewable Energy Law

The Renewable Energy Law was enacted to encourage the production of electricity by using renewable energy resources, to help protection of the environment and also to bring our legislation in harmony with the EU legislation so that the same standards adopted by the European Union can also be adopted in Turkey. The Renewable Energy Law aims to draw the attention of investors in the energy market by offering an attractive environment to investors engaged in the production of electricity by using renewable energy resources.

The cornerstone of the Renewable Energy Law is the purchase-guarantee system stipulated under Article 6. Pursuant to Article 6 of the Renewable Energy Law, each legal entity holding a retail sales license is obliged to purchase electricity from the electricity producers holding certificates of renewable energy resource (the "CRER")2 and using production facilities which have been operated for less than ten years. In the same Article, it is stated that the amount of electricity to be purchased by a retail sales license holder will equal to the proportion of the total electricity sold by the license holder in the previous year to the total amount of electricity sold in the Turkish market. Pursuant to Article 6, these purchases will be made over the average wholesale electricity price determined by EMRA for the previous year. Article 6 also determines a minimum and a maximum price for such purchases and states that the purchase price of the electricity produced from renewable energy resources will be Euro Cent 5 /kWh, at the minimum and Euro Cent 5,5 /kWh, at the maximum. Therefore, the price determined by EMRA cannot be less than Euro Cent 5 /kWh and more than Euro Cent 5,5 /kWh. However, the Renewable Energy Law permits legal entities with CRERs to sell the electricity produced from renewable energy resources in the free market and at a price more than the purchase price set forth in this Article, if they have any such opportunity. Article 10 of the Renewable Energy Law stipulates certain sanctions to be imposed on retail sales license holders which do not comply with the purchase obligation set forth under Article 6. Based on our contacts with the officers of EMRA, we understand that at the time of our analysis, there has not been any application to EMRA to obtain a CRER and all the producers choose to sell the electricity they produce in the free market.

Another incentive stated under the Renewable Energy Law relates to the use of immovable property owned by the Treasury or under the administration of the State for the purpose of production of electricity from renewable energy resources. Pursuant to Article 8 of the Renewable Energy Law, facilities which will start their operations until 2012 shall be entitled to a discount of 85% over the amount to be paid in consideration for the lease or right of use or right of easement on such lands during the first 10 years as of the date of their establishment.

The Proposal

The most noteworthy amendment suggested by the Proposal is the determination of different purchase prices for the electricity produced from different types of renewable energy resources. Pursuant to the Proposal, different prices varying from Euro Cent 5 /kWh and Euro Cent 18 /kWh will be applied to the purchase of electricity depending on the type of renewable energy resource used. The Proposal has a more realistic approach than the Renewable Energy Law as it contemplates application of different prices depending on the type of renewable energy resource and thus, responds better to the needs of the sector.


Today, the promotion of the use of renewable energy resources is vital for the future of all countries. Although Turkey has significant renewable energy resources for electricity production, this potential has not yet been used efficiently by local or foreign investors. The renewable energy resources in Turkey may be considered as a developing and promising opportunity for foreign and local investors, however, in order to attract the attention of investors, government has to make sure that the market conditions are appealing to them. The legislator in Turkey is taking important steps in order to promote the use of renewable energy resources in the production of electricity and to encourage the investments in this market. However, even if the Proposal were to be enacted without any change, the needs of the market may still not be completely satisfied. Therefore, the legislator must have a progressive approach regarding the renewable energy resources since there are always steps to be taken in such a developing and demanding market.


1 Directive 2001/77/EC of the European Parliament and of the Council dated 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market

2 The electricity producers using renewable energy resources are granted a CRER by the Energy Market Regulatory Authority (the "EMRA"). The purpose of giving a CRER is to determine the source of the electricity purchased and sold in the market.

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.