Regulation On Floating Solar Power Plants (Floating PV Regulation)

The Regulation on the Principles and Procedures Regarding the Utilisation and Leasing of Water Surfaces for the Establishment of Solar Power Plants (“Floating PV Regulation” or the “Regulation”), which entered into force upon its publication in the Official Gazette dated 10 December 2025 and numbered 33103, introduces a comprehensive regulatory framework governing the establishment and operation of floating solar power plants on reservoirs and canal water surfaces under the authority of the General Directorate of State Hydraulic Works (“DSİ”).

The Regulation sets out, in a detailed manner, the principles and procedures applicable to the establishment and operation of floating solar power plants. In this context, it regulates a wide range of matters, including but not limited to the project development process, the leasing and use of water surfaces, applicable technical criteria, operational obligations, as well as security and guarantee mechanisms.

In this study, we aim to assess the provisions of the Floating PV Regulation on an article-by-article basis and from a holistic perspective, with a particular focus on issues that may come to the fore in practice, as well as their potential implications.

Purpose, Scope and Legal Basis (Articles 1, 2 and 3)

The purpose of this Regulation is to determine the principles and procedures regarding the use and leasing of water surfaces for the establishment of floating solar power plants. Within this framework, the Regulation covers, pursuant to the provisions of the Electricity Market Law No. 6446 dated 14 March 2013, the processes for the receipt and evaluation of applications submitted by legal entities operating or intending to operate in the electricity market in relation to floating solar power plants planned to be established on dam reservoirs, artificial lakes and canal surface areas.

In this context, the Regulation further governs the feasibility and project development principles, the procedures and conditions for the leasing of water surfaces, as well as matters concerning the operation, maintenance and decommissioning of the relevant facilities upon the expiry of their period of use.

The Regulation has been prepared pursuant to Article 6 of the Coastal Law and subparagraph (o) of paragraph 121/1 of Presidential Decree No. 4.

Definitions and Abbreviations (Article 4)

The Regulation includes a large number of definitions under the heading “Definitions and Abbreviations”. As a matter of approach, in this study, concepts that are already defined under the existing legislation have not been reiterated. Instead, some of the definitions and concepts introduced by the Regulation and which are considered to bring novelty in practice are listed below:

Primary water source, Canal-mounted solar power plant, Normal water level (NWL), Protocol on the Use of Water Surfaces for the Establishment of Floating Solar Power Plants (the “Protocol”), Reservoir operation plan, Water-contact systems, Non-water-contact systems, Floating solar power plant (Floating PV), Floating PV Island, Floating PV Island water surface contact ratio, Floating PV Island layout plan, Floating PV site

Application Principles and Evaluation

Renewable Energy Resource Areas (Article 5)

Among dam reservoirs, artificial lakes and canal water surfaces, those deemed appropriate by the DSİ are submitted to the General Directorate of Energy Affairs (“EİGM”) in order to be opened for applications by legal entities within the scope of the Law on the Use of Renewable Energy Resources for the Purpose of Generating Electrical Energy.

For Renewable Energy Resource Area (“YEKA”) projects planned for the establishment of floating solar power plants through YEKA tenders, an initial feasibility study report prepared by DSİ, upon the request of the Ministry of Energy and Natural Resources (the “Ministry”), for the purpose of designating a floating solar power plant site on reservoir water surfaces, is submitted to the Ministry.

In cases where the relevant areas are located within protection and development zones declared under the Tourism Incentive Law, the opinion of the Ministry of Culture and Tourism is obtained.

Integrated Renewable Electricity Generation Facilities (Article 6)

Within the scope of integrated renewable electricity generation facilities, the application and evaluation process for floating solar power plants planned to be established based on generation facilities whose primary energy source is hydropower is, as a rule, carried out before the DSİ. In this context, applications for floating solar power plants are, as a general principle, submitted to DSİ on the condition that they are planned within the power plant site registered under the generation license relating to the primary energy source owned by the relevant legal entity. However, for power plants whose primary energy source is hydropower, and which are operated by Electricity Generation Corporation (“EÜAŞ”), an exceptional regime is envisaged whereby the requirement for the floating solar power plant to be planned within a licensed power plant site is not sought.

The content of the floating solar power plant application file to be submitted to DSİ is determined in detail under the Regulation. Accordingly, the submission of a comprehensive set of documents is required, including, inter alia, incorporation and commercial documents relating to the applicant legal entity, the generation license or pre-license relating to hydropower-based facilities, the Environmental Impact Assessment (“EIA”) decision or EIA application document within the scope of the environmental legislation, technical and spatial documents demonstrating the interaction of the floating solar power plant with publicly and privately owned facilities, planning documents at various scales, as well as a feasibility report.

Furthermore, where deemed necessary during the review process, DSİ is explicitly authorised to request additional information and documentation from the applicant.

If, as a result of the examination carried out by DSİ, the application file is found to be appropriate, an approval letter is issued and notified to the applicant legal entity and, where deemed necessary, to the relevant institutions. Conversely, if any deficiencies or the need for revisions are identified during the review, DSİ may request the submission of a revised application file. In such case, the applicant is required to submit the revised application file to DSİ within a maximum period of ninety days as of the notification of the revision request. Provided that compliance with the requested conditions is ensured, the acceptance of requests for additional time is also possible. However, if the revised application file is not submitted within the prescribed period, the application is expressly deemed to have been rejected.

On the other hand, where the floating solar power plant application file is found to be inappropriate as a result of the review conducted, the application is rejected directly by DSİ, and this decision is notified to the applicant legal entity and, where deemed necessary, to the relevant institutions.

Floating Solar Power Plants to Be Established by DSİ or Irrigation Unions for the Purpose of Meeting the Energy Needs of Irrigation Facilities (Article 7)

Article 7 of the Regulation sets out the legal framework governing the establishment of floating solar power plants by the DSİ” and Irrigation Unions for the purpose of meeting the energy needs of irrigation facilities.

Within this scope, for the purpose of meeting the energy needs of irrigation facilities owned by or under the disposal of DSİ, and operated by DSİ or whose operation, maintenance and management responsibilities have been transferred to DSİ, as well as the costs associated therewith, floating solar power plants may be established or caused to be established by DSİ in accordance with the provisions of the Regulation on Unlicensed Electricity Generation in the Electricity Market (“Unlicensed Generation Regulation”). Projects developed by DSİ for this purpose are assessed with priority in terms of land use.

The Regulation is not limited to individual irrigation facilities; it also allows for the establishment of floating solar power plants for the purpose of meeting the energy needs and costs of more than one irrigation facility by DSİ.

Irrigation Unions may also establish or cause to be established floating solar power plants, either individually or jointly, provided that the favourable opinion of DSİ is obtained and within the framework of the Unlicensed Generation Regulation. In jointly implemented projects, it is mandatory that one of the Irrigation Unions be authorised by the others through a full and unlimited power of attorney, in accordance with the procedure set out under the Irrigation Unions Law.

Finally, it is stipulated that the content of the application file, as well as the principles and procedures governing the application and implementation process in relation to floating solar power plants to be established by Irrigation Unions for the purpose of meeting the energy needs and costs of irrigation facilities, shall be separately determined by DSİ. In this respect, DSİ appears not only as the authority providing its opinion, but also as the central administrative body shaping the process and determining the applicable standards.

Floating Solar Power Plants to Be Established by Municipalities or Their Affiliated Entities (Article 8)

Floating solar power plant projects to be established by municipalities or their affiliated entities on dam reservoirs, artificial lakes and canal water surfaces may be implemented within municipal boundaries and in accordance with the provisions of the Regulation on Unlicensed Electricity Generation in the Electricity Market (“Unlicensed Generation Regulation”). In this context, the application file prepared for the floating solar power plants planned to be established must be submitted to the DSİ, as the public authority responsible for the use and operation of the relevant project area.

For applications to be submitted to DSİ, it is envisaged that a comprehensive application file be prepared so as to enable DSİ to carry out technical and spatial assessments. Within this scope, the application file must include, inter alia, contact information relating to the applicant, decisions of the authorised decision-making bodies (municipal council or general assembly) regarding the establishment of the facility, trade registry documents, plans and maps demonstrating the interaction of the facility with DSİ-owned facilities or facilities owned by other public institutions and organisations as well as the private sector, the feasibility report and documents evidencing the payment of the review fee for such report.

In addition, the application file must also include documents showing the expropriation boundaries of the onshore areas used, the maximum and minimum water levels of the reservoir, geographic information system studies indicating the location of the floating solar power plant site, as well as a licensed survey map approved by an authorised cadastral office demonstrating municipal boundaries.

DSİ is authorised to request additional information and documentation from the applicant where deemed necessary during the review of the application file. Where the application is found to be appropriate as a result of the review, a letter of compliance to be issued by DSİ will be notified to the relevant municipality or affiliated entity, as well as to other relevant institutions.

Conversely, where deficiencies or matters requiring revision are identified during DSİ's review, the applicant may be requested to revise the application file. In such case, the revised application file is expected to be prepared and resubmitted within a maximum period of ninety days as of the notification of the revision request. Applications that are not resubmitted within the prescribed period, or that are found to be inappropriate as a result of the review, are rejected and notified to the relevant institutions.

Order of Priority in the Evaluation of Floating Solar Power Plant Applications (Article 9)

Article 9 of the Regulation sets out, in a detailed manner, who may submit applications, under which conditions and according to which order of priority, for floating solar power plant projects planned to be established on dam reservoirs, artificial lakes and canal water surface areas.

Within this framework, generation facilities holding a pre-license or a generation license may establish floating solar power plants within the power plant sites registered under their licenses, excluding the reservoir areas of power plants operated by EÜAŞ. With respect to reservoir areas of power plants operated by EÜAŞ, the establishment of floating solar power plants is only permitted, subject to the favourable opinion of the DSİ, within the scope of auxiliary source projects of EÜAŞ, YEKA projects carried out under the coordination of the Ministry of Energy and Natural Resources (the “Ministry”), projects to be developed by DSİ or irrigation unions, as well as projects to be established by municipalities or their affiliated entities.

Where more than one floating solar power plant application is submitted for the same reservoir or the same site, the Regulation introduces a binding order of priority. Accordingly, priority is granted first to floating solar power plant projects to be established for the purpose of meeting the energy needs of irrigation facilities; second, to floating solar power plant projects of an auxiliary source nature based on generation facilities whose primary energy source is hydropower; third, to floating solar power plant projects to be developed within the scope of YEKA; and finally, to floating solar power plant projects to be established by municipalities or their affiliated entities within municipal boundaries.

In cases where the reservoir subject to the application is located within the boundaries of more than one province, following the allocation of areas to projects developed by DSİ and to floating solar power plant projects whose applications have previously been found appropriate, municipalities or their affiliated entities may submit applications for the remaining area, limited to the ratio determined under the Regulation. The same principle applies in metropolitan municipalities where the reservoir extends across the boundaries of more than one municipality.

With respect to floating solar power plant applications to be submitted by municipalities or their affiliated entities within reservoir and canal water surface areas located within the boundaries of metropolitan municipalities, a decision must be adopted pursuant to the Metropolitan Municipality Law. In provinces without metropolitan municipality status, the decision-making process is carried out in accordance with the Municipality Law.

Where the maximum installed renewable energy capacity that the relevant municipality or affiliated entity may apply for under the Unlicensed Generation Regulation remains below the floating solar power plant potential, the unused capacity is assessed within the scope of other applications by DSİ, thereby preventing the relevant area from remaining idle.

Finally, where a request for the establishment of a floating solar power plant is found appropriate, the legal relationship regarding the use of the relevant area is established through the execution of a protocol with irrigation unions, or through the execution of a lease agreement with other legal entities.

Feasibility Report and Review Fee for Floating Solar Power Plants (Article 10)

The feasibility process for floating solar power plant projects is structured as a multi-stage mechanism under which the project content remains subject to administrative review, while the fee structure and timelines may give rise to binding consequences for the applicant. In the event that any change is envisaged in the project formulation submitted together with the feasibility report for floating solar power plants planned to be established by legal entities, the opinion of DSİ and the relevant institutions is sought, and where deemed necessary by DSİ, the revision of the feasibility report and the renewal of the lease agreement may be requested. In this respect, the feasibility report may be considered not merely as a technical document, but also as a dynamic legal basis affecting the leasing relationship.

At the application stage, a feasibility report review fee for floating solar power plants, as determined and announced annually by DSİ, is collected, and where the application file is not found to be appropriate, the review fee paid is not refunded. Accordingly, the form and content of the application constitute a factor that directly affects the risk of financial loss for the applicant.

The revision regime applicable to feasibility reports is differentiated depending on the source of the request. Where a revision is requested by DSİ, an additional review fee is not charged for the first revised feasibility report. Conversely, where a revision is requested by the legal entity, a separate review fee is charged for each revised report. This distinction indicates that the financial responsibility for investor-driven changes is placed on the applicant.

With respect to feasibility reports prepared within the scope of irrigation unions and YEKA projects, the absence of a review fee to be collected by DSİ may be considered as an exceptional and incentive-based arrangement introduced for such projects.

Revised feasibility reports are required to be submitted to DSİ within a maximum period of ninety days as of the date of notification. Where an extension is requested, the total period may be extended, provided that it does not exceed ninety days in total. Failure to submit the revised feasibility report within the prescribed periods may result in the application of the legal entity being deemed rejected.

Procedures and Principles Regarding Leasing or Right of Use and Security (Article 11)

Article 11 regulates the legal instruments and procedures through which the leasing of water surfaces or the granting of a right of use shall be established in floating solar power plant projects. In this context, for projects to be carried out between the DSİ and Irrigation Unions, it is envisaged that a protocol shall be executed between the parties on the basis of the sample protocol set out under Annex-1B to the Regulation. For other legal entities apart from Irrigation Unions, the leasing of the water surface or the granting of a right of use is carried out within the framework of the sample lease agreement set out under Annex-1A to the Regulation.

In addition, regardless of the model applied, it is mandatory for the legal entity to execute the undertaking set out under Annex-2 to the Regulation and submit it to DSİ. Through such undertaking, the legal entity agrees and undertakes in advance to comply with the provisions of the Regulation, the conditions applicable to the lease or right of use, as well as the obligations determined by DSİ.

Article 11 further authorises DSİ, where required by the technical, environmental or operational characteristics of the project, to introduce project-specific additional provisions into the undertaking set out under Annex-2. Through this arrangement, DSİ is enabled to assess each floating solar power plant project within the framework of its specific conditions and to impose additional obligations beyond the standard texts, where deemed necessary.

Renewable Energy Resource Areas (“YEKA”) (Article 12)

Legal entities that win the YEKA tenders organised for dam reservoirs, artificial lakes and canal water surface areas designated as YEKA, and that execute the YEKA agreement, are entitled to enter into a lease agreement with the DSİ for the relevant area. Following the completion of the YEKA tender process and the granting of a pre-license by the Energy Market Regulatory Authority (“EMRA”), the legal entity shall apply to DSİ within the scope of this Regulation to execute the lease agreement and the undertaking, and copies of such documents shall be submitted to the Ministry of Energy and Natural Resources (the “Ministry”) and EMRA.

Through this arrangement, the YEKA process and the establishment of the right of use before DSİ are interlinked, and it may be observed that licensing, area allocation and administrative notifications are structured within a coordinated and simultaneous framework.

Integrated Renewable Electricity Generation Facilities (Article 13)

Legal entities whose applications are found appropriate by the DSİ and whose subsequent procedures before EMRA are successfully completed are required to execute a lease agreement and an undertaking with DSİ within the prescribed period. Copies of the executed documents are submitted to the EİGM and EMRA.

Failure to submit an application to DSİ within sixty days shall result in the application of the relevant legal entity being deemed rejected.

Floating Solar Power Plants to Be Established by Irrigation Unions (Article 14)

For floating solar power plants to be established or caused to be established by Irrigation Unions for the purpose of meeting the energy needs and operating costs of irrigation facilities within their organisation, the relevant Irrigation Union shall apply to the DSİ and execute a protocol with DSİ. In addition, the execution of an undertaking by the Irrigation Union is mandatory.

Copies of the executed protocol and undertaking shall be submitted to the EİGM and the EMRA.

Floating Solar Power Plants to Be Established by Municipalities and Their Affiliated Entities (Article 15)

In floating solar power plant projects to be established by municipalities or their affiliated entities, where the application is found appropriate by the DSİ, a lease agreement is executed between DSİ and the relevant administration. In addition, the execution of an undertaking by the legal entity is mandatory, and copies of the executed documents are submitted to the EİGM and EMRA. In this framework, it may be assessed that municipalities are afforded the opportunity to develop floating solar power plants while preserving the public service nature of their activities.

The updated lease fees applicable for subsequent years shall be paid within five business days as of the commencement date of each lease period, taking into account the contract date. Lease fees that are not paid in a timely manner are subject to follow-up and collection in accordance with the general provisions.

Determination of Lease Fees (Article 16)

Article 16 regulates the method for calculating the lease fees to be applied under lease agreements to be executed with the DSİ in relation to floating solar power plant projects. Accordingly, the first-year lease fee is calculated based on formulae determined by taking into account the installed capacity of the facility, the estimated average annual energy generation depending on its location, the water surface area occupied by the facility and the overall size of the area, as well as market prices of the preceding year.

Different calculation methodologies are adopted for reservoirs and canal water surfaces. With respect to canal projects, a reference is additionally made to the general DSİ immovable property leasing legislation for areas used other than the water surface.

The calculated lease fees are updated in subsequent years in line with the Consumer Price Index (“CPI”). However, for facilities established for agricultural irrigation purposes, irrigation unions are granted the right to use the water surface free of charge.

Through this arrangement, it may be stated that the determination of lease fees is intended to be carried out within an objective, market-based and area-sensitive framework.

Collection of Lease Fees (Article 17)

Article 17 regulates the payment procedure for the lease fees determined for floating solar power plant facilities. Accordingly, the first-year lease fee is required to be paid in advance to the DSİ within five business days following the execution of the lease agreement. The updated lease fees applicable to subsequent years must be paid within five business days as of the commencement of each lease period.

Lease fees that are not paid in a timely manner are subject to pursuit and collection in accordance with the general provisions. In cases of force majeure, provided that DSİ deems it appropriate, the payment of lease fees may be deferred by taking statutory interest into account.

Lease Term (Article 18)

Article 18 differentiates the duration of the lease agreement or protocol applicable to floating solar power plant projects based on the legal status of the facility. Within the scope of YEKA or auxiliary source projects whose primary source is hydraulic power, the lease agreement remains valid until the end of the electricity generation license period.

For floating solar power plant facilities established by municipalities or their affiliated entities within the scope of unlicensed generation, the lease term is determined as a maximum of ten years, with the possibility of extension for additional ten-year periods, not exceeding two extensions in total, subject to the approval of the DSİ.

With respect to irrigation unions, a protocol is applied instead of a lease agreement, and similarly, a maximum term of ten years together with an extension mechanism is defined in parallel.

Renewal of the Lease Agreement (Article 19)

Article 19 regulates the circumstances under which a lease agreement may be renewed. Accordingly, a renewal request must be submitted at the latest six months prior to the expiry of the lease term. In cases where there is a change in the coordinates or size of the project site, a change in the company's trade name or legal form, the issuance of a generation license within the scope of licensing legislation, or amendments in the applicable legislation requiring the lease agreement to be updated, the lease agreement may be renewed, subject to the approval of the DSİ.

Notifications regarding renewed lease agreements are made by DSİ to the Energy Market Regulatory Authority (“EPDK”) and other relevant institutions. Furthermore, following the termination or nullification of a lease agreement, where the grounds leading to such termination are eliminated and the suitability of the area continues, it is also possible to re-establish the lease agreement upon the request of the legal entity.

Handover of the Floating PV Site to DSİ (Article 20)

Article 20 regulates the conditions and procedures for the handover of floating solar power plant sites to the DSİ upon the expiry of the lease term or the termination of the lease relationship for any reason. Accordingly, upon the expiration of the lease term, the legal entity is obliged to deliver the floating PV site to DSİ in a condition fully cleared of all facilities and equipment located on the site and restored to its leased state. The handover shall be recorded by way of a written handover report to be issued by DSİ.

In the event that the legal entity fails to fulfil this obligation, all works and procedures required for the removal of the facilities and equipment from the site shall be carried out ex officio by DSİ. The costs incurred in this context shall be set off against the security provided by the legal entity. The legal entity shall not be entitled to raise any claim against DSİ or other relevant institutions in relation to the expenditures made with respect to the leased areas.

Notwithstanding the expiry, termination or invalidation of the lease agreement, where the facilities and equipment on the site are not removed and the site is not handed over, proceedings shall be initiated before the local administrative authority of the place where the site is located in order to ensure the eviction of the legal entity from the site and the delivery of the site to DSİ.

Termination or Invalidity of the Lease Agreement (Article 21)

Article 21 comprehensively regulates the circumstances under which lease agreements concerning floating solar power plant sites may be terminated or become null and void as a direct consequence. Accordingly, where a due lease payment is not paid, a sixty-day grace period is granted to the legal entity; if the outstanding lease debt is not paid within this period, the lease agreement may be terminated by the DSİ. Furthermore, where the lessee legal entity is liquidated, declared bankrupt, or otherwise ceases to exist following the execution of the lease agreement, the lease agreement shall become null and void automatically.

In cases where the lease agreement expires, is terminated, or becomes null and void, statutory interest shall be applied to unpaid lease debts for the relevant period in accordance with the general provisions. With respect to floating solar power plant facilities constructed within the scope of YEKA, the lease agreement shall become null and void upon the cancellation of the YEKA agreement or the generation license, or upon the expiry of the license term. The same consequence shall apply to floating solar power plants established as auxiliary source facilities whose primary source is hydraulic power, in the event of the cancellation or expiry of the relevant license.

For floating solar power plant facilities established within the scope of unlicensed generation, the lease agreement shall be deemed null and void upon the expiry or cancellation of the permit granted by the Energy Market Regulatory Authority (“EPDK”), as well as in cases where the lease term expires and the lease agreement is not renewed. In addition, the lease agreement will no longer be valid in the event that either the ‘Environmental Impact Assessment (“EIA”) Not Required Decision' or the ‘EIA Positive Decision' is annulled.

Furthermore, where the construction or operation activities of the floating solar power plant are carried out in violation of the Regulation, the lease agreement, or the undertakings set out in the commitment letter, or where the security is not updated in accordance with the procedures stipulated under the Regulation, DSİ is entitled to terminate the lease agreement and forfeit the security.

In the event of the termination or invalidity of the lease agreement, the legal entity is required, within a maximum period of ninety days, to remove all equipment belonging to the floating solar power plant facility, transport such equipment to an appropriate site or deliver it to recycling facilities, and to hand over the leased area to DSİ upon completion of rehabilitation works restoring the area to its leased condition. Furthermore, in cases involving the expiry, termination or invalidity of the lease agreement, the transfer of the facility, or the cancellation of the project, any unpaid lease fees relating to the relevant lease period must be paid, and lease fees already paid shall not be refunded.

Security (Article 22)

Article 22 regulates the procedures and principles regarding the type, amount, updating, forfeiture and return of the security to be obtained from the legal entity during the leasing process for floating solar power plant facilities. Accordingly, during the written application to be submitted to the DSİ for the execution of the lease agreement, the legal entity is required to provide DSİ with a security with a three-year validity period, in an amount determined and announced by DSİ based on the installed capacity of the facility. The security provided shall be maintained by being updated once every three years.

Where the security is provided in the form of a letter of guarantee, the legal entity is required to submit to DSİ a new letter of guarantee reflecting the updated security amount, together with extension letters, at the latest thirty days prior to the expiry date of the existing letter. In the event of failure to comply with this obligation, DSİ shall issue a warning letter and request the completion of the required actions within the specified period. If, despite such warning, the necessary actions are not taken, DSİ shall, prior to the expiration of the letter of guarantee, initiate proceedings before the relevant bank or private financial institution to convert the security into cash and deposit it into DSİ's account, and the amount so converted shall be recorded as revenue in favour of DSİ.

Where the security is provided in cash, the difference between the existing security amount and the updated security amount must be submitted to DSİ, either in cash or in the form of a letter of guarantee, at the latest thirty days prior to the expiry of the three-year period calculated from the date on which the security was deposited. In the event that this obligation is not fulfilled, DSİ shall issue a warning letter, and if the obligation continues to remain unfulfilled, the security shall be forfeited.

The security amount to be submitted to DSİ may be satisfied through letters of guarantee obtained from more than one bank or may alternatively be deposited in cash into DSİ's account. In addition, the circumstances under which the security may be returned are regulated in a limited manner. Accordingly, where the legal entity withdraws from its floating solar power plant application prior to the execution of the lease agreement, or where the lease agreement is not executed for any reason, the security may be returned. However, feasibility report review fees shall not be refunded.

Following the execution of the lease agreement, where the termination of the agreement is requested on the grounds that the project is no longer technically or economically feasible or that it would cause significant environmental harm, and such request is deemed appropriate by DSİ, the security shall be returned. Where a new security is provided, the existing security shall be returned. In cases where the lease term expires or the lease agreement becomes null and void, the security shall be returned, provided that DSİ determines by way of a record that the floating solar power plant site has been delivered in the leased condition.

Conversely, where the legal entity fails to fulfil the obligations set forth under the Regulation, the lease agreement shall be terminated, and the existing security shall be forfeited. Furthermore, the updated security amounts shall be announced by DSİ every year in January. No security shall be required for floating solar power plant facilities to be established as auxiliary source projects at hydroelectric power plants operated by the EÜAŞ.

Force Majeure Events (Art. 23)

Article 23 regulates the procedures and principles regarding the postponement of obligations arising from this Regulation for legal entities that have executed a lease agreement with DSİ for the purpose of establishing and operating floating PV facilities, in the event of the occurrence of force majeure. Accordingly, where force majeure events arise, all or part of the obligations of the legal entity under this Regulation may be postponed, subject to DSİ's approval.

The Regulation sets out the circumstances that shall be deemed force majeure. In this context, sudden natural disasters, all types of fires and epidemics; war, nuclear and chemical contamination, states of mobilization, public uprisings, attacks, terrorist acts and sabotage, as well as strikes, lockouts or other civil servant or worker actions, are considered force majeure events. However, for such events to be accepted as force majeure, it is required that, despite the affected party having exercised due care and diligence and taken all necessary measures, the event is unavoidable, unforeseeable and beyond control, and that it actually prevents the fulfilment of obligations under the relevant legislation.

In order for a decision to be taken regarding the postponement of obligations due to force majeure, the legal entity must submit an application to DSİ within the prescribed period and content. In this respect, the legal entity is required to submit to DSİ, within no later than twenty days from the commencement of the force majeure event, a written application enclosing documents issued by the competent authorities evidencing the nature of the force majeure, indicating its start date, its impacts on the obligations under the relevant legislation, and, where possible, the estimated duration required for the elimination of such impacts.

Applications made under this Article shall be evaluated and finalized by DSİ within sixty days following the completion of the information and documents required for the application. In this regard, it may be assessed that the Regulation establishes a mechanism whereby the postponement of obligations in cases of force majeure is subject to DSİ's discretion and is based on a time-bound and documented assessment.

Water Surface Use Principles

Restricted Areas (Art. 24)

Article 24 sets out the areas where floating solar power plants may not be installed and establishes the maximum ratios of water surface areas that may be covered, thereby defining the fundamental spatial limitations applicable to water surface use. Accordingly, the development of Floating PV facilities is prohibited in areas restricted under the Coastal Law, in dams constructed for flood control purposes, on reservoir water surfaces with a normal water level area of less than 0.5 km², and in areas protected pursuant to applicable legislation. Through this regulation, areas prioritised for environmental protection, public safety, and flood management are excluded from Floating PV investments.

In addition, the total surface area of Floating PV islands may not exceed ten percent of the reservoir area at normal water level and thirty percent of the reservoir area at minimum water level. This limitation aims to safeguard the ecological balance of the reservoir, preserve water quality, and protect its primary functional uses.

Project Design Criteria (Article 25)

Article 25 comprehensively regulates the technical, environmental, and operational criteria applicable to the design of floating solar power plants and explicitly places the responsibility for project design on the legal entity. Floating PV facilities must be designed in compliance with the applicable legislation, engineering and technical standards, the undertakings regarding the leasing of the water surface, and the technical requirements set forth in this Regulation.

In reservoir-based facilities, floating PV activities shall not be permitted in areas designated as prohibited zones, and the facilities must be positioned at a distance that does not create safety risks for the dam body and auxiliary structures. Floating PV facilities to be installed on canal water surfaces must be designed and operated on structures that do not come into contact with water and do not adversely affect canal stability or operation, maintenance, and repair activities. Along the canal route, the length of floating PV islands shall not exceed 250 meters, and a minimum distance of 25 meters shall be maintained between the islands.

Floating PV systems shall be designed on the basis of engineering calculations ensuring resistance to wave, wind, snow, and ice loads. Stabilization systems limiting panel movements on the water surface, as well as sensor and remote monitoring systems tracking the horizontal and vertical movements of floating systems, shall be used. In reservoir water surfaces, each floating PV island shall not exceed 10 hectares; the islands shall be connected by anchoring and cabling systems capable of adapting to water level fluctuations; a minimum distance of 30 meters shall be maintained between islands; and a horizontal distance of at least 25 meters from the minimum water level boundary shall be preserved.

In the event that the minimum water level falls below the operating plan of the reservoir, DSİ shall not be held liable for any damages arising therefrom, and the legal entity shall not be entitled to claim any compensation. DSİ does not provide any guarantee regarding the quality or quantity of water. Protection of the floating PV area against flood and inundation risks, the use of water-resistant and environmentally friendly materials, testing of materials in contact with water by accredited institutions, installation of warning systems to ensure visibility, and obtaining all necessary permits for any project modifications shall be under the responsibility of the legal entity.

Project Approval, Construction Supervision and Acceptance Procedures (Article 26)

Article 26 regulates which legislation shall apply to the project approval, construction supervision and acceptance processes for floating solar power plants. Accordingly, with respect to Floating PV facilities, these procedures shall be carried out in line with the legislation applicable to ground-mounted solar power plant projects and by the relevant authorities. Through this regulation, it is intended that the technical and administrative supervision processes of Floating PV projects are addressed within an integrated and harmonised framework consistent with existing ground-mounted solar power plant practices.

Project Approval (Article 27)

Article 27 regulates the obligations related to the approval process of floating solar power plant (FPV) projects. For FPV facilities to be installed on reservoir water surfaces, one copy of the projects prepared by the legal entity and approved by the relevant institutions and organizations shall be submitted to the DSİ and the Energy Market Regulatory Authority (EPDK) during the pre-construction phase. The legal entity is obliged to comply with the opinions and instructions of DSİ and the relevant institutions at all stages of the project.

Projects related to FPV facilities to be installed on canal water surfaces shall likewise be submitted to DSİ and EPDK, and DSİ may request revisions for projects deemed inappropriate. Throughout this process, the legal entity is required to act in accordance with the opinions and instructions of DSİ and the relevant institutions at every stage of the project approval process.

Site Handover (Article 28)

Article 28 governs the procedure for site handover in respect of floating PV facilities to be installed on canal water surfaces. Accordingly, for floating PV facilities to be installed on canal surfaces, the site shall be handed over to the legal entity by a commission appointed by the DSİ. Construction activities may not commence unless and until the site handover has been duly completed by the DSİ.

Pre-Acceptance Procedures (Article 29)

Article 29 regulates the determinations and inspections to be carried out prior to the acceptance procedures of floating PV facilities. In floating PV facilities installed on reservoir water surfaces, it shall be examined whether the floating PV site and islands have been constructed in accordance with the coordinates specified in the feasibility report. In facilities installed on canal water surfaces, it shall be examined whether the facility has been constructed at the coordinates specified in the feasibility report and whether the installations have any adverse impact on water structures.

Such determinations shall be carried out by the DSİ prior to the acceptance procedures, with the participation of the representative of the legal entity, and the results shall be recorded in minutes.

Non-Interference with Other Activities (Article 30)

Article 30 regulates that the construction, operation, maintenance and repair activities of floating PV facilities shall not disrupt other activities carried out in reservoirs and canals. Accordingly, floating PV activities conducted by the legal entity may not cause any disruption to other activities in the reservoir or canal.

Operating Activities

Reservoir and Canal Operation Plans (Article 31)

Article 31 regulates the principles regarding the preparation and implementation of reservoir and canal operation plans. Reservoir operation plans are prepared by the State Hydraulic Works (DSI), and the legal entity is obliged to comply with these plans. DSI reserves the authority to make temporary or permanent amendments to reservoir operation plans within the framework of changes occurring in upstream and downstream conditions. Due to such plan amendments, the legal entity shall not be entitled to claim any right or compensation from DSI.

Canal operation shall also be carried out within the scope of the plans determined by DSI, and the legal entity is obliged to comply with such plans. The legal entity may not claim any right or compensation due to matters arising from canal operation or from the conversion of canals into closed systems within the scope of rehabilitation works. Furthermore, for floating solar power plants installed on canal surfaces, the water required for cleaning the solar panels shall be supplied by the legal entity, and all necessary measures shall be taken to ensure that the water used during cleaning is not discharged into the canal.

Environmental Compliance (Art. 32)

Article 32 regulates the obligations relating to the environmental impacts of floating solar power plants. If it is determined by the relevant institutions and organizations that a Floating PV facility has adverse effects on the environment, water quality, or the ecosystem, taking all necessary measures shall be the responsibility of the legal entity. At any stage of the project, any project modifications requested by DSİ on environmental, technical, or social grounds shall be carried out by the legal entity, and in this context, no rights or compensation claims may be asserted against DSİ. Where deemed necessary, inspections and examinations may be carried out by a commission established by DSİ, with the participation of the representative of the legal entity. If the deficiencies identified are not remedied within the specified period, the lease agreement may be terminated. The cleaning of solar panels shall be carried out solely using ultra-deionized pure water or reservoir water, and no chemical substances shall be used.

Article 33 – Use of Fixed Facilities and Watercraft

Article 33 sets out the rules regarding the use of fixed facilities and watercraft within the scope of floating solar power plants. In the event that fixed facilities related to the floating PV facility are constructed on land during the construction and operation phases, such facilities must be located outside the maximum water level elevation and in appropriate areas that do not disrupt the activities of the State Hydraulic Works (DSİ). All vessels and inland watercraft to be used during the construction and operation activities of the floating PV facility must hold valid certificates of seaworthiness for inland waters in accordance with the Regulation on Vessels and Watercraft Operating on Inland Waters. In addition, operators of such vessels must possess the required navigation and management licenses.

Article 34 – Obligations and Liabilities of the Legal Entity

Pursuant to Article 34, all works and procedures required to be carried out before the relevant institutions and organizations within the scope of the applicable legislation shall be conducted by the legal entity. The legal entity shall be solely responsible for any and all adverse consequences arising from insufficient studies, analyses, or assessments conducted during the planning phase.

All risks associated with the floating solar power plant, including but not limited to the inability to operate the facility for any reason or the generation of electricity at levels below those projected, shall rest entirely with the legal entity. Any damages arising from force majeure events or technical failures shall also be borne by the legal entity. In such cases, all procedures related to the removal of damaged panels and equipment from the water surface and their transfer to land shall be carried out by the legal entity.

During the construction and operation phases, the legal entity shall be responsible for taking all necessary precautionary measures, covering all costs associated with project revisions where required, and ensuring that all activities are carried out in a manner that does not cause damage to DSİ facilities or third parties. Furthermore, the legal entity shall ensure the proper storage, recycling, treatment, and disposal of all waste generated, as well as full compliance with any amendments to the applicable legislation.

Occupational Health and Safety (Article 35)

Article 35 regulates the obligations relating to occupational health and safety in floating solar power plants . The legal entity is obliged, during both the construction and operation phases, to take all necessary measures to ensure the safety of life and property in accordance with the Occupational Health and Safety Law.

The legal entity shall not be entitled to claim any right or compensation from (DSİ) for any loss or damage arising from adverse conditions that may occur within the floating PV site during electricity generation activities.

Furthermore, during the construction and operation phases of floating PV facilities, all civil defense, protection, private security, and environmentally protective security measures shall be ensured by the legal entity.

Article 36 – Equipment and Materials to Be Used

Article 36 regulates the technical and environmental standards applicable to the equipment and materials to be used in floating solar power plant facilities. All systems that come into contact with water must be manufactured from raw materials that are permitted for water contact under the relevant legislation and that pose no risk to water quality.

Floating PV panels, floating systems and all other equipment are expected to comply with national and international standards in terms of safety, durability and suitability for environmental conditions. The water resistance and protection classes of the panels shall be determined by taking into account long-term water contact. None of the equipment used may be of a nature that would release heavy metals, chemical substances, microplastics or radioactive elements into the water.

Furthermore, all procedures relating to the removal of any floating PV components that become out of use for any reason from the reservoir surface and their transportation to areas compliant with the applicable legislation shall be carried out by the legal entity.

Article 37 – Rules on the Use of Water Surface

Article 37 sets out the purpose and limits of use of the water surface allocated to the legal entity. The legal entity may use the allocated water surface solely for electricity generation purposes and may not use such area for any other purpose, lease it to third parties, or transfer it. Any and all damages, losses, and legal liabilities arising from the failure to comply with the obligations set forth under the Regulation shall be borne by the legal entity. In such case, DSİ shall be entitled to terminate the lease agreement. The termination of the lease agreement or the expiry of the lease term shall not eliminate or affect any legal liabilities of the legal entity that have arisen prior thereto.

Transitional Provisions

Alignment Process for Existing Projects (Provisional Article 1/1)

Provisional Article 1/1 regulates the alignment process with the new Regulation for projects whose floating solar power plant feasibility reports were found appropriate by DSİ or for which a lease agreement was executed prior to the entry into force of this Regulation. Within this framework, the legal entity is required to prepare a new feasibility report in the format set forth under Annex-3 of the Regulation and submit it to DSİ within three months as of the publication date of the Regulation. If the submitted feasibility report is found appropriate by DSİ, the lease agreement shall be renewed in accordance with the provisions of the Regulation, and a separate undertaking shall be executed by the legal entity. In the event that no application is submitted within the specified period, the existing lease agreement shall be terminated by DSİ.

Set-Off Method for Lease Fee (Provisional Article 1/2)

Provisional Article 1/2 regulates the calculation method of the first-year lease fee during the transition to the new lease agreement. Accordingly, the amount determined by taking into account the periods paid for but not utilized under the previous lease agreement for the last lease period shall be set off against the first-year lease fee calculated under the new lease agreement. No interest shall be applied in the course of such set-off, and in the event that an excess amount arises following the set-off, such excess amount shall not be refunded to the legal entity.

Feasibility Review Fee (Provisional Article 1/3)

Pursuant to Provisional Article 1/3, no floating solar power plant feasibility report review fee shall be charged for the initial feasibility report submitted within the scope of the transition process.

Refunds for Rejected Applications (Provisional Article 1/4)

Provisional Article 1/4 regulates the refund procedure applicable to applications that were found appropriate by DSİ or for which a lease agreement was executed prior to the publication date of the Regulation, but which were subsequently rejected on the grounds that they fail to meet the project design principles set forth under the new Regulation. Accordingly, upon the request of the legal entity, the lease fees and feasibility report review fees previously paid shall be refunded to the legal entity by DSİ, and no interest shall be applied to such refunds.

Entry into Force (Article 38)

Article 38 governs the date of entry into force of the Regulation. Accordingly, this Regulation shall enter into force on the date of its publication.

Enforcement (Article 39)

Article 39 regulates the authority responsible for the enforcement of the provisions of the Regulation. Accordingly, the provisions of this Regulation shall be enforced by the DSİ.

In Conclusion

The Regulation on Floating Solar Power Plants significantly clarifies the legal and technical framework governing the use of water surfaces for electricity generation, while at the same time regulating, in a detailed and project-specific manner, the scope of DSİ's authorities and the obligations imposed on investors.

From an implementation perspective, it is evident that each project will need to be assessed in light of its own technical and site-specific characteristics, and that any additional conditions that may be required by DSİ should be carefully monitored. In this respect, we consider that the interpretation of the Regulation together with evolving administrative practice will be a key determining factor for investors.

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.