Substantial Changes Shaping Turkey's Energy Policies

Implications for Permits and Licensing

The Law No. 7554, commonly referred to as the "Super Permit Law," is considered as a significant turning point in Turkey's environmental, mining, and energy policies. This amendment, which is understood to aim at accelerating investment and permitting procedures, strengthening environmental supervision mechanisms, and prioritizing public benefit, is regarded as a comprehensive reform long expected. The Law, adopted on 19 July 2025, is expected to simplify Environmental Impact Assessment (EIA) procedures, facilitate permitting processes in renewable energy projects, and introduce new provisions regarding licensing and authorization requirements in certain designated mining areas, thereby aiming to secure legal certainty for investors in critical areas.

However, it is also observed that the amendment has been subject to objections from certain stakeholders, including non-governmental organizations and opposition groups. Criticism has been raised that the facilitation of permitting procedures may result in the weakening of environmental standards, create risks concerning transparency, and increase environmental and social costs. From this perspective, it is being evaluated that while the Law intends to strengthen investment predictability and centralize permitting procedures, it may also generate ongoing debates in the public sphere.

In this article, the provisions amended in five different laws will be assessed individually, with a focus on the potential implications from an investment perspective.

Environmental Law

By virtue of the amendment introduced to Article 10 of the Environmental Law, it has been regulated that unless a Positive Environmental Impact Assessment (EIA) Decision is issued, no approval, permit, incentive, license, or utilization right may be granted, and no tender or contract may be executed in respect of such projects. However, a new provision has been incorporated stating that "the absence of a Positive EIA Decision shall not prevent applications for approval, permit, license, incentive, or tender processes." Accordingly, while it continues to be the case that no investment may commence, no tender may be held, and no construction or utilization permit may be granted before a Positive EIA Decision, the barrier which previously prevented the submission of applications is understood to have been removed.

From an investment standpoint, it is foreseen that this amendment may enable the simultaneous conduct of EIA processes together with applications for incentive certificates, pre-licenses, and other permits. As a result, investors may not need to wait for the finalization of the EIA process to proceed with such applications, which is expected to shorten project timelines. Since bureaucratic delays may thereby be reduced, the amendment is anticipated to allow for the earlier physical commencement of investment activities.

The amendment to the provision is understood to have been introduced to facilitate the quicker realization of investments and to reduce the loss of time arising from administrative obstacles faced by investors. It may be said that particularly in the fields of energy, industry, and infrastructure investments, this amendment could allow investors to benefit from the easing of the EIA (Environmental Impact Assessment) process requirements in certain areas.

It is observed that the phrase "EIA is required" has been removed from the text, while emphasis has been placed on the existence of a "Positive EIA Decision." This appears to indicate an intention to reduce uncertainties in the EIA process, to simplify the procedure in favour of investors, and to provide greater clarity in practice.

Pasture Law

Through the amendment made to Article 14 of the Pasture Law, a new subparagraph (k) has been added to Article 14/1. With this amendment, the allocation purpose of pasture areas may be altered for renewable energy investments within the scope of the Law No. 5346 on the Utilization of Renewable Energy Sources for the Purpose of Generating Electrical Energy, dated 10 May 2005. Accordingly, pastures ("mera") , summer highlands ("yaylak"), and wintering grounds ("kışlak") are understood to have become legally available for renewable energy investments upon allocation.

Although this amendment may appear to constitute a minor change, it is considered that the possibility of utilizing rural areas for renewable energy investments could hold substantial importance. It is anticipated that this regulation might facilitate the use of idle or underutilized pasture areas for renewable energy purposes, thereby potentially contributing to the acceleration of investment processes.

Renewable Energy Law

With the addition of Provisional Article 1 to the Renewable Energy Law, new regulations have been introduced regarding zoning and licensing procedures. Zoning plans concerning licensed wind and solar power plants may now be approved directly by the Ministry, and the issuance of building permits and occupancy permits may also be carried out by the Ministry without the need for approval by municipalities or special provincial administrations. For unlicensed facilities, demolition orders will continue to be issued by municipalities and special provincial administrations. Urgent expropriation decisions shall be deemed valid documents in the licensing process; thus, even if the expropriation has not been completed, the licensing procedure may not be suspended, and the project may be able to progress. Further details of the implementation are expected to be regulated by secondary legislation to be issued by the Ministry.

In summary, it is understood that a centralized authority vested with what may be described as "super authorization" has been introduced in relation to zoning and licensing processes for investments.

Furthermore, with the amendment introduced to Article 8 of the Renewable Energy Law, it is observed that efforts have been made to render the investment environment more predictable, efficient, and cost-effective. The amendment titled "Regulations Concerning Land Requirements and Other Administrative Processes" has been incorporated into the legislation, and this expression appears to include within its scope matters such as land allocation, zoning, environmental, technical, and administrative procedures. For renewable energy facilities commissioned until the year 2030 (earlier drafts referred to 2025) 85% reduction will be applied to permit, lease, easement right, and usage permit fees for a period of ten years. The permit procedure for immovable properties classified as forest land has been set, and with the new regulations, a permit system compatible with the pre-license process has been introduced for wind and solar energy projects to be carried out on forest areas.

It is understood that ornithological observation has been made mandatory for projects located on bird migration routes, while in other areas, it may only be required for investors to take precautionary measures if demanded by the administration. These regulations are expected to simplify the permitting processes and bring flexibility at project stages.

Electricity Market Law

Provisional Article 4

Amendments introduced under Provisional Article 4, titled "Regulations for Ensuring Security of Supply," provide that projects eligible for incentives shall be those commissioned until 31/12/2030, by moving forward the last commissioning date by five years. In this regard, the incentive period has been extended from 10 years to 15 years. This appears to grant investors a significant long-term advantage. Accordingly, the regulation is considered not only to strengthen the financial standing of investors but also to enhance the consistency of security of supply policies with the national energy strategy.

It is noteworthy that this amendment has been enacted within the framework of the Electricity Market Law, which suggests that the security of supply policy has been more firmly embedded in the legislative structure of the electricity market.

Provisional Article 33

It is stipulated that, until 31/12/2030, expropriation decisions may be taken by the Board to secure immovable properties subject to private ownership which are required for licensed or unlicensed renewable energy-based generation facilities. The duration may be extended once, for up to five years, by Presidential decision.

This practice, which is seen as providing an exceptional facilitation for renewable energy investments, may be interpreted as meaning that property ownership problems faced by investors during the licensing process could be resolved under state guarantee, thereby offering an additional safeguard.

Provisional Article 34

It is regulated that electricity generation facilities which hold a generation license but do not have a construction permit or a usage permit, and which were commissioned before 31/12/2024, shall acquire legal status. It is further stipulated that the Council of State decisions dated 03/05/1985 shall not be applied, implying that demolition or collection decisions previously taken shall not be enforced, and that amounts already collected shall not be refunded.

Furthermore, the conformity certificate to be issued for the production facility shall be deemed to replace for the workplace opening and operation license, and a fee corresponding to one per mille of the investment amount shall be payable for the conformity certificate of the production facility. In addition, it has been made mandatory to submit documents evidencing that the static conformity report has been undertaken under the professional liability of engineers.

Mining Law

Article 3 -Definitions

Article 3has been amended with new definitions.

License Fee: calculated and, by the end of each year, for exploration licenses entirely deposited into the budget of the General Directorate; for operation licenses, 30% to the budget of the General Directorate, and 70% to the general budget, to be deposited into the account of the accounting unit of the General Directorate.

Board: Refers to the board consisting of the Vice President appointed by the President, the Minister of Environment, Urbanization and Climate Change, the Minister of Energy and Natural Resources, the Minister of Treasury and Finance, the Minister of Industry and Technology, and the Minister of Agriculture and Forestry, authorized to make decisions regarding permits, as well as representatives from other relevant ministries invited by the President.

Rehabilitation: Works carried out in order to restore the disturbed areas due to mining activities, to bring them to safety, to improve, stabilize, correct, replace topsoil, sow seeds, plant saplings, adjust land structure, create recreation areas in suitable places, afforestation, landscaping, and chemical and physical remediation.

Rehabilitation Cost Account: To be used for covering rehabilitation expenses, an exclusive account shall be established in the name of the Investment Monitoring and Coordination Presidency or the Special Provincial Administration for Group I (a) mines; for other groups and subgroups, an exclusive account shall be opened under the name of the General Directorate in public banks, where guarantees of license holders shall be kept.

Collection Office: According to this Law, with respect to receivables to be collected under Law No. 6183, the relevant department of the Investment Monitoring and Coordination Presidency or the Special Provincial Administration for Group I (a) mines, and the relevant tax office for other groups and subgroups, shall be authorized.

Article 7- Permits in Mining Activities

According to the new regulation, the relevant institutions consulted during the EIA (Environmental Impact Assessment) process are obliged to give their opinions within a maximum of four months, three months in general, unless otherwise specified. If an opinion is not provided, it shall be deemed as "positive approval." The Board is observed to have been authorized to grant permits for strategic minerals under "overriding public interest." Even if the licensed field is later allocated to another purpose, mining activity may continue, with the aim of preventing retrospective grievances.

If cultural assets are encountered and the activity is suspended, it is aimed that the investment expenses shall be compensated to prevent losses. For licenses with extended duration, it is foreseen that temporary facility operations may be continued without requiring a new application or permit, thereby reducing the administrative burden.

However, before a license is granted, separate opinions are required from different institutions regarding areas such as forests, natural conservation sites, tourism centres, and national parks. This may potentially cause the investment process to become more complex. In forests, instead of granting a permit free of charge, it is envisaged that the submission of an undertaking shall be required, and if an application is made within six months regarding previously acquired rights, the investor may face time and cost increases in case the process needs to be repeated. If a proven reserve overlaps with another investment, the Ministry has been vested with the authority to determine investment priority, and the Ministry may reassign or restrict usage in such areas. In cases of license boundary changes or cancellations, it appears that compensation processes regarding the investor's rights and receivables shall fall within the discretion of the Ministry.

It is observed that according to the National Parks Law, the Tourism Incentive Law, the Coastal Law, the Law on the Protection of Cultural and Natural Assets, and other relevant legislation (national parks, water protection areas, natural conservation sites, forests, cultural and tourism regions, military restricted zones, etc.), as well as the approval plans of these areas, the General Directorate shall be informed, including for investments other than mining. Moreover, information regarding activities such as industrial zones, energy plants, oil–natural gas–geothermal investments shall also be communicated to the relevant institutions.

From the perspective of the investor, it may be stated that the prior determination of investment areas enables predictability in permit processes. On the other hand, in sensitive and protected areas, investments are subject to certain limitations, and thus project location choices may become restricted.

Apart from forests, in these areas, before licenses are granted, the General Directorate shall apply to the relevant institutions for opinion and permit requests. Applications must be answered within three months at the latest; however, following the granting of the permit, the administration has been vested with the authority to make changes in project or rehabilitation plans.

From the perspective of the investor, although the specification of a three-month evaluation period seems to provide predictability, it is considered that this may still delay the project start date. In addition, the possibility of subsequent revisions to the plan indicates that uncertainties regarding timing and legal stability may continue.

According to the new regulation, in state forests, for mandatory facilities related to exploration and operation, as well as public utility facilities (road, energy, water, communication, etc.), a permit shall be granted within three months for a maximum period of twenty-four months in accordance with the Forestry Law, provided that an application is submitted.

From an investor's perspective, it is considered that the initial granting of a permit free of charge may reduce upfront costs and allow for swift mobilization. Conversely, the fact that such permits could give rise to financial obligations in the event of operation or transfer is regarded as a factor that may increase the risk of additional costs.

Article 8- Strategic or Critical Minerals

The former heading of Article 8, which had been entitled 'Circumstances in which a mining right may not be granted,' has been amended and replaced with the new title 'Strategic or Critical Minerals.' It may be noted that the introduction of the concept of strategic minerals into the legislation envisages that the state could exercise broader discretionary powers over such resources. Minerals which may be restricted due to national security and economic welfare, and which are of high significance in terms of supply or external factors, have been defined as "strategic minerals." The determination of strategic and critical minerals shall be carried out by the Ministry of National Defence, the Ministry of Industry and Technology, and the Ministry of Trade, with the opinions of relevant public institutions, and finalized by the Ministry of Energy and Natural Resources. It has been stipulated that urgent expropriation may be conducted with respect to mining activities related to these minerals, which has been interpreted as meaning that mining fields held by the private sector may be rapidly transferred to the state.

Pursuant to the new regulation, without exceeding ten percent of the production volume of the preceding year for strategic and critical minerals, a certain proportion or quantity may, by decision of the President, be required to be set aside by license holders for the purpose of stockpiling. Such a mechanism may, in effect, provide the legal framework for the state to establish its own reserves, thereby potentially reinforcing security of supply.

These amendments appear to increase the likelihood of public intervention in relation to strategic minerals from an investor's standpoint, while simultaneously diminishing predictability. Nevertheless, they may also be construed as enabling the state to administer these mineral resources in a more effective manner, particularly with the objective of safeguarding supply security.

Article 13 – License fees, rehabilitation fees, penalties and other sanctions

The amendments, while considered appropriate in terms of environmental sustainability, public oversight, and the principle of accountability, may also imply higher transparency for investors, yet at the same time could be understood as leading to higher costs and compliance obligations. Particularly, small and medium-sized investors may need to take these new obligations into account in their financial planning.

The equalization of the rehabilitation fee with the operating license fee may substantially increase investment costs, and in cases where the fee is not paid, provisions explicitly regulating license cancellation, collection, and penalty procedures, as well as administrative sanctions, have been introduced, which may be regarded as a sign of stricter enforcement.

It is also considered that the regulation stipulating that no declarations or transactions regarding the license may be carried out without ensuring post-operation environmental compliance may raise investors' exit costs from the site, as even activities outside the operating license may require fulfilment of rehabilitation obligations, thereby potentially creating additional per-transaction costs in practice.

Article 14 – State royalty

With the amendments under Article 14, it is observed that "chrome" has been excluded from the group of minerals subject to state royalty under Group IV.

It is thought that the possible reasons for the exclusion of chrome from this group may involve aims such as strengthening competitiveness, lowering production costs, and ensuring the supply of low-cost raw materials to the domestic industry, and the amendment is expected to create an encouraging impact in favour of both exporters and domestic industry users.

Given that Turkey is one of the prominent producers of chrome ore worldwide and that chrome is used as a critical input in the stainless steel and alloy industry, it is thought that the reduction of the state royalty burden may encourage producers to process the ore domestically and transform it into higher value-added products.

With the amendment made under Article 14, it is observed that the provision stating that 'for mining licenses with an operating permit, a state royalty shall be collected each year in an amount not less than 50% above the license fee' has been introduced, thereby increasing the state royalty collected. The provision stipulating that 'a guarantee shall be taken each year in the amount of 30% of the operating license fee in order to ensure the implementation of the environmental compliance plan' has been removed, which may be regarded as a change made with the aim of alleviating the financial burden on investors. However, this amendment, which also entails the risk of weakening environmental protection mechanisms in the long term, is thought to be intended to be compensated by the administration through tighter field inspections and sanctions, thereby aiming to avoid disruptions in environmental compliance processes.

Article 16 – Initial application and licensing

With the amendments introduced under Article 16, it is observed that various structural changes have been made in the process of initial application and licensing. According to the newly added provision, investors are required to submit a guarantee amounting to 5% of the total investment cost for the project and to pay the license fee, upon which the license may be granted directly. This could be regarded as reducing uncertainty for investors who are committed to investment.

Overall, the amendments appear to aim at directing investors more strongly towards technical competence and financial capability. It is understood that the policy objective is to ensure effective and efficient operation of mining sites, particularly where public resources are concerned.

However, the increase in procedural obligations, together with the requirement for the investor to both pay the license fee and submit the project and guarantee documents within two months, may give rise to new risks and costs, particularly for small-scale investors.

Article 17 – Exploration Activity

With the amendments introduced under Article 17, the exploration period has been defined as the "general exploration" phase followed by the "detailed exploration" phase.

It is stipulated that, although minimum activities have been carried out, in cases where exploration activities are determined not to be conducted in compliance with the project, the portion of the guarantee corresponding to the annual realized investment shall be forfeited. If requested, the portion corresponding to the realized investment shall be refunded to the license holder; however, if within two-year period less than fifty percent of the annual investment program is realized, the deposited guarantee shall be forfeited, and the license shall be cancelled. If the exploration activities do not result in the discovery of an operable reserve, following the reporting process, if requested, the exploration license fees together with the auction price shall be refunded to the license holder.

In the event of a justified application following the detailed exploration, an additional two-year "feasibility period" may be granted, during which the feasibility report must be submitted; if not submitted or deficiencies are not remedied, the license shall be cancelled, and it is stipulated that twice the license fee for the detailed exploration period shall be collected.

These amendments are considered to be aimed at ensuring that exploration licenses are effectively utilized by serious investors. The new timeframes, the obligation to submit technical reports, and the requirement for guarantees are seen as measures that encourage investors to advance their projects more swiftly, while also providing an additional opportunity through the feasibility period. However, it is also understood that in cases where obligations are not fulfilled, the risk of significant financial losses is high, and therefore financial and technical planning carries major importance.

Article 24 -Operating License and Exploitation of Minerals

The amendments introduced under Article 24 aim to establish a more disciplined licensing regime by focusing particularly on environmental obligations and production performance. The concepts of operating license fee, rehabilitation fee, and minimum license fee have been clarified, and it has been stipulated that these must be deposited at the time of license applications. The conditions for granting an operating permit have been made more explicit, and it has been clearly specified from which point in time the state royalty will be collected.

As a result, for investors with strong capital capacity who can fulfil environmental and technical obligations, the system is becoming more predictable. However, small and medium-sized investors may face the risk of being excluded from the system or experiencing loss of rights due to increasing financial and administrative obligations.

Article 30 – Tender

Through the amendments made under Article 30 titled "Tender," it is observed that the licensing process has been rearranged, particularly in relation to the tender procedure, the right of priority, and the transfer of sites to public institutions. While it was previously possible to directly obtain licenses for minerals classified under Group II (b) and Group IV, it now appears that these areas must also be licensed through tender together with other groups.

In respect of areas that have lapsed, been abandoned, or partially forfeited, it is understood that licenses will no longer be granted directly but instead must be issued through tender procedures. This may potentially lead investors to assume additional burdens in terms of both time and costs.

The amendments under Article 30, while seemingly aiming to ensure that mining sites are presented to investors in a more planned and transparent manner, may also give rise to certain disadvantages with respect to cost and duration of investment processes, due to the restriction of direct licensing opportunities and the emphasis placed on the tender procedure. It is considered that, although such amendments may increase opportunities for large-scale and financially stronger investors, they may, at the same time, render it more difficult for smaller investors to access these sites, which could be expected to influence the competitive balance in the mining sector in the longer term.

Provisional Article 45

Through Provisional Article 45, it has been regulated that in cases where mining activities conducted for the purpose of meeting energy needs coincide with olive groves, such activities may be carried out under certain conditions. This regulation introduces new rights and obligations particularly for licensed field owners and royalty holders.

According to the amendment, if a mining site is registered as or factually consists of an olive grove and it is not possible to conduct activities in another area, mining activities may be permitted on the condition that the olive trees are relocated. In cases where relocation of olive trees is not possible, the Ministry may authorize the establishment of a temporary facility within the same district or province, provided that public interest is taken into account. For each olive tree that is relocated or cannot be relocated, it has been made compulsory to plant at least twice as many new olive trees, and, in addition, an annual supplementary payment equivalent to the operating license fee has been imposed to ensure rehabilitation works.

It is observed that Provisional Article 45 aims primarily to prevent disruptions to mining investments of strategic importance for energy supply security due to lands designated as olive groves.

Provisional Article 46

Provisional Article 46 regulates the temporary provisions concerning the payment, conversion into cash, and enforcement of environmental compliance guarantees. It is observed that this article aims to establish a clear and binding timeframe regarding the guarantee obligations of license holders. Pursuant to Article 13, guarantee letters issued (environmental compliance guarantees) must be paid in cash within one year from the entry into force of this article; otherwise, such guarantee letters shall be converted into cash and transferred to the environmental rehabilitation account.

It is considered that this article intends to ensure a stricter financial regulation of environmental compliance guarantees. Although this may create certain financial obligations, it is anticipated that the transparent definition of environmental obligations and the requirement that all license holders be subject to equal rules may provide a fair and sustainable investment environment.

In Lieu of a Conclusion

Although Law No. 7554 aims to ensure speed, coordination, and administrative convenience in investment and permitting processes, it has given rise to significant debates as to whether it may weaken existing mechanisms for the protection of the environment, agriculture, pastures, and forest areas. The fact that the regulation grants extensive powers to the General Directorate of Mining and Petroleum Affairs ("MAPEG"), brings into question the functionality of environmental impact assessment (EIA) processes, the routinization of urgent expropriation, and the risks of opening sensitive ecosystems to investment projects; these concerns have particularly been raised by environmental organizations and local communities.

Within this framework, the law carries, on the one hand, the potential to contribute to economic development and energy supply security, while on the other hand giving rise to concerns that it may entail irreversible ecological and social costs in the long term. In our view, it is of critical importance during the implementation process, to adopt an approach that both balances investor needs with environmental sustainability, while ensuring strong, transparent, and effective oversight mechanisms.

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.