The Electricity Market Licensing Regulation was amended with the Regulation on Amending the Electricity Market Licensing Regulation published in the Official Gazette dated 24 February 2017 ("Amendment Regulation"). Among others, the Amendment Regulation introduces changes with regards to renewable energy resource areas "RERA", details for which are provided in the Regulation on Renewable Energy Resource Areas ("RERA Regulation"). As per the RERA Regulation, RERA will be developed by the Renewable Energy General Directorate or through a competition process. Such competition will concern connection capacity allocation. Applicants will provide bids for the connection area and connection capacity announced by the energy and Natural Resources Ministry.
For example, the Amendment Regulation (i) indicates that the duration of pre-licenses and generation licenses granted for RERA may not exceed 36 months and 30 years respectively; (ii) separates pre-license applications made by RERA from those made by other entities aiming to generate electricity; (iii) provides the procedures to be followed for RERA applications concerning pre-licenses; and (iv) details the mechanism for changes with regards to pre-licenses granted to RERA and their cancellation/termination.
The Amendment Regulation also broadens the exceptions for share transfers of pre-license holding entities. Accordingly, the share transfer restriction in the Electricity Market Licensing Regulation will not apply in the following cases:
Direct and indirect shareholding changes among existing shareholders provided that there is no change of control in the shareholding structure of the relevant pre-license holder
In pre-license holding entities, where majority of the shareholding is directly or indirectly owned by public authorities, direct/indirect shareholding changes due to a share capital increase or a change in shareholders, provided that there is no new shareholder aside from public authorities/corporations
Direct and indirect shareholding changes arising from the pre-license holder's and its direct/indirect shareholders' buy back of their own shares within the scope of the Turkish Commercial Code
Direct and indirect shareholding acquisitions within the pre-license holding entity, which arise from foreign sources (by foreign legal entities or legal entities incorporated under the Turkish Commercial Code and controlled by such foreign legal entities)
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