The Development Of Renewable Energy Law In Türkiye

Introduction

Increasing the share of renewable energy sources in electricity generation has become one of the key priorities of Türkiye’s energy policies over the past two decades. Rising energy demand, the need to ensure energy supply security, reduce external dependence, and achieve sustainable development goals in the context of combating climate change have necessitated the establishment of a comprehensive legal and institutional framework in the field of renewable energy.

In this process, Turkish energy legislation has not been limited to regulations that merely incentivize renewable energy investments; it has developed comprehensive regulations in many areas, such as the licensing of production activities, grid connection, land-use permits, environmental obligations, support mechanisms, and integration into the electricity market. Consequently, renewable energy law has emerged as a distinct subfield of energy law with its own dynamics and regulatory tools.

This article will examine the development of renewable energy law in Türkiye within the framework of key legislative changes and the evolution of the regulatory approach.

Laying the Foundations of Renewable Energy Law

The first comprehensive legal regulation in the field of renewable energy in Türkiye was enacted through Law No. 5346 on the Use of Renewable Energy Sources for the Production of Electricity, which entered into force on May 10, 2005.

Prior to Law No. 5346, provisions related to renewable energy were scattered across various pieces of legislation, and there was no comprehensive and predictable legal framework for investors. With the enactment of this law, a legal definition of renewable energy sources was established for the first time; the principles of support mechanisms for electricity generation from these sources were defined; various incentives regarding the use of public real property were introduced; and regulations aimed at streamlining investment processes were adopted.

However, the fundamental rules regarding the licensing of renewable energy production activities and the operation of the electricity market were shaped by the Electricity Market Law No. 6446, which entered into force later; production licenses, market activities, and the regulatory framework are largely governed by this Law.

In this regard, Law No. 5346 established a support and incentive system specific to renewable energy, while Law No. 6446 created the legal infrastructure for the electricity market in which renewable energy investments operate.

Development of Support Mechanisms: YEKDEM

One of the most significant milestones in the development of renewable energy law has been the creation of support mechanisms aimed at ensuring financial predictability for investors.

In this context, significant amendments were made to Law No. 5346 in 2010 through Law No. 6094, and the Renewable Energy Sources Support Mechanism (YEKDEM) was restructured. With these amendments, different purchase prices were established based on the type of renewable energy source, and additional incentives were introduced to promote the use of domestically produced mechanical and electromechanical equipment.

From a legal perspective, YEKDEM has facilitated project financing by increasing revenue predictability for investors and has played a significant role in the sector’s growth. In particular, the revenue guarantee offered by the support mechanism has been a decisive factor in investment decisions, especially for credit institutions providing long-term financing.

However, the various changes the support mechanism has undergone over time in line with economic developments in the energy market have brought the balance between the principle of legal certainty and the regulatory authority’s power to adapt to market conditions back into focus. In particular, the transition from a foreign currency-based support model to a Turkish lira-based support system has required striking a delicate balance between investor expectations and the public interest.

The Transformation of Administrative Processes in Renewable Energy Investments

Renewable energy projects require the concurrent application of numerous regulations not only under energy legislation but also under administrative law, environmental law, zoning law, and real property law.

For a renewable energy investment to be implemented, depending on the nature of the project, it is necessary to obtain a production license or the required permits under relevant legislation; complete the grid connection review and system usage processes; conduct environmental impact assessment (EIA) procedures; finalize forest permits and pasture allocation procedures; and complete zoning plan amendments and building permit processes.

For this reason, the development of renewable energy law can also be viewed as a process aimed at streamlining administrative permitting mechanisms for investment processes and strengthening administrative coordination.

Legislative changes made in recent years have aimed to accelerate permitting processes, enhance coordination among public institutions, and reduce the administrative burden on investors.

The Interaction Between Environmental Law and Renewable Energy Law

While renewable energy investments serve environmental sustainability goals, this does not mean that such projects are exempt from environmental oversight.

Particularly with regard to wind and hydroelectric energy projects, issues such as the protection of biodiversity, the preservation of natural habitats, impacts on bird migration routes, the use of forest areas, and the protection of cultural and natural assets can give rise to significant legal disputes.

In this context, environmental impact assessment processes continue to play a vital role as one of the key tools for ensuring the legal compliance of renewable energy investments. Decisions by the Council of State have consistently emphasized the need to strike a fair and balanced approach between energy investments and environmental protection.

Consequently, renewable energy law has evolved into a comprehensive regulatory framework that not only aims to increase energy supply but also safeguards environmental values in line with the principle of sustainable development.

Storage Facilities and Hybrid Generation Models

Regulations concerning electricity storage systems are at the forefront of recent developments in renewable energy law.

The safe integration of intermittent generation sources, such as wind and solar energy, into the electricity grid has necessitated a clear legal definition of the status of storage technologies. In line with this, legislative amendments have been adopted to establish specific regulations regarding the licensing of storage facilities, their connection to the grid, and their operations in the electricity market.

Similarly, regulations concerning hybrid generation facilities have made it possible to use multiple renewable energy sources together in existing generation facilities; the aim is to make more effective use of the existing grid infrastructure and increase resource efficiency.

These developments demonstrate that renewable energy law is not limited to incentive mechanisms alone; it has evolved into a comprehensive regulatory field that directly impacts the technical, economic, and commercial structure of the electricity market.

Conclusion

Renewable energy law in Türkiye has developed significantly over the past twenty years and has evolved into a multi-layered legal framework. The basic framework established by Law No. 5346 has expanded considerably over time through the development of support mechanisms, the restructuring of the electricity market, the streamlining of administrative permitting processes, and the adoption of regulations regarding new technologies.

Today, renewable energy law constitutes an interdisciplinary legal field situated at the intersection of energy law, administrative law, environmental law, and electricity market regulations.

In the coming period, issues such as energy storage systems, hybrid generation models, carbon markets, grid flexibility, and digitalization are expected to shape legal developments in this field. In this context, the evolution of renewable energy law will serve as a key indicator not only of energy policies but also of Türkiye’s energy transition, sustainable development goals, and its process of aligning with international climate policies.

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