As it is mentioned in our Article dated April 09, 20211, the Regulation on Renewable Energy Resource Guarantee Certificates in the Electricity Market ("Regulation") has been published in the Official Gazette no. 31304 dated November 14, 2020 2.
Within the scope of the Regulation, it was envisaged that the issues related to the Renewable Energy Resource Guarantee ("YEK-G") system would be regulated by the Operational Procedures and Principles of the YEK-G System and Organized YEK-G Market. In this context, the Operational Procedures and Principles of the YEK-G System and Organized YEK-G Market ("Procedures and Principles") were published in the Official Gazette dated May 8, 2021 and numbered 314783.
The Regulation and therefore the Procedures and Principles will take effect on June 1, 2021. This article will focus on the main clarifications brought by the Procedures and Principles.
First of all, it will be required to determine the scope of the Procedures and Principles. The Procedures and Principles cover the issues related to the participation of legal entities with production and supply licenses in the renewable energy resource guarantee system, issuance, transfer, cancellation, amortization of renewable energy resource guarantee certificate (YEK-G certificate), disclosure of renewable energy supply, creation and operation of YEK-G market organized by YEK-G system, registration, reconciliation, collateral management and invoice and payment transactions.
Accordingly, YEK-G certificate will be issued by Energy Markets Operation Company ("EPIAS) as "Market Operator" in order to monitor and prove that a certain amount of electrical energy supplied to consumers by suppliers is produced by renewable energy sources. YEK-G documents are issued electronically and can be traded in the YEK-G market based on every 1 (one) MWh documentable production amount of system users.
In accordance with the Article 5/3 of the Procedures and Principles, YEK-G certificate is issued by the EPIAS within the framework of the following principles:
- Only licensed production facilities based on renewable energy sources can apply for YEK-G certificate issuance.
- The main production quantity for the issuance of YEK-G certificate is the documentable production quantity produced in the production facilities under subsection (a).
- Participation in the YEK-G system is voluntary.
According to the Article 5/5 of the Procedures and Principles the YEK-G certificate will be valid for 12 (twelve) months from the end date of the production period.
According to the Article 5/7 of the Procedures and Principles Each YEK-G document to be issued will be in Turkish and English and will contain the following information: English translation. a) Commercial title of YEK-G system user. b) Name of the production facility, date of initial acceptance, electrical installed power in the enterprise, license number, ENTSO-E code. c) The type of primary energy source used in the plant where electrical energy is produced. d) The type of main source and auxiliary source used in multiple welded power generation plants. e) Registration/identification number given uniquely in the registration database. f) The production period (start and end date) of the electricity exported to the YEK-G certificate. g) Production plant type/technology. h) The name of the country where the production facility is located. i) Location information of the production facility. j) Date, time information on the export of YEK-G certificate, k) Information on whether the production facility where the electrical energy is produced, which is the subject of the YEK-G certificate, is included in the YEK support mechanism. l) Other information that may be added by the EPIAS.
Pursuant to the Article 7 of the Regulation, the legal entities who have completed the processes related to the participation of the YEK-G system specified in the Article 9 of the Regulation can apply to the Market Operator to carry out registration procedures in the YEK-G system. The Market Operator completes the reviews and evaluations of the information and documents in the application file within 5 working days following the application date.
Within the scope of the Article 7, the YEK-G system registration process is completed and the legal entities with production licenses opened in the registration database register the production facilities based on renewable energy sources that they will include in the YEK-G system through English translation. Market Management System. As a result of the production facility registration process, the production facilities related to the account opened on behalf of the relevant legal entity are associated in the registration database.
English translation. All YEK-G system users sign the YEK-G system participation agreement and the YEK-G system users who will participate in the organized YEK-G market also sign the organized YEK-G market participation agreement and present it to the Market Operator.
YEK-G documents, which are traded in the YEK-G market, are transferred by YEK-G system users between the accounts in the registration database. English translation. Due to errors that may arise during issuance or transfer transactions, relevant YEK-G documents may be revoked by the Market Operator in accordance with the Article 16 of the Procedures and Principles. English translation.
Pursuant to the Article 20 of the Procedures and Principles the supply companies disclose to consumers in the green tariff category that all of the electricity they supply is generated from renewable energy sources by putting a special sign or logo on consumers' bills. The standard of the sign to be added to the consumer invoices related to the green tariff is determined by the Energy Market Regulatory Authority (EPDK). In the organized YEK-G market, contracts that oblige to receive or deliver the YEK-G document at the matching price will be processed by the Market Operator. In accordance with the Article 31 of the Procedures and Principles, market transaction guarantee will be taken in the amount to be calculated through the formula in the relevant article against the financial risks that may arise regarding invoice payments related to invoice payments for transactions carried out by market participants in the organized YEK-G market, and only market transaction amounts can be traded in the organized YEK-G market.
As a result of YEK-G reconciliation calculations, final reconciliation notifications containing the amounts that YEK-G system users will receive or make for each billing period will be announced to YEK-G system users via Market Management System.
According to the Articles 38 and 39 of the Procedures and Principles, the Market Operator issues invoices according to the amounts contained in the YEK-G final settlement notice no later than 7 days from the day the YEK-G final reconciliation notice is announced to YEK-G system users via Market Management System. The date of publication of the YEK-G final reconciliation notice is considered as the invoice notification date for YEK-G system users. A single invoice is issued for the YEK-G system and organized YEK-G market activities. YEK-G system users to be paid will send the invoice issued according to the amounts contained in the YEK-G final reconciliation notice to the Market Operator no later than 7 days from the day the YEK-G final reconciliation notice is announced to YEK-G system users via Market Management System. English translation.
The costs of invoices submitted to YEK-G system users regarding YEK-G settlement are paid by the debtor YEK-G system users to the account of the Market Operator in the central settlement organization by the debtor YEK-G system users on the second business day following the date of the invoice notification at the latest, provided that the total amount of the credit is deducted from the invoice price if the same YEK-G system user is the invoice creditor. The costs of invoices submitted by YEK-G system users to the Market Operator are paid from the account of the Market Operator in the central settlement organization, using intermediary banks, in accordance with the date and order of the invoice notification, within the third business day following the date of invoice notification by the Market Operator by deducting the net invoice debt and unpaid debts in relation to the markets operated by the Market Operator.
Author's Note: This article is a general information on the subject. The procedures and principles published in the Official Gazette dated May 8, 2021 should be examined in detail in terms of Settlement Transactions, Billing Transactions, Payments and Collection and all other detailed information related to the YEK-G system.
Footnotes
2. https://www.resmigazete.gov.tr/eskiler/2021/05/20210508-23.pdf
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.
