CLIENT ALERT

August 2019

   

 

For further information please contact:

Lara Sezerler
Partner, Istanbul
l.sezerler@cergun.av.tr

Cansu Hangül
Legal Intern, Ankara
c.hangul@cergun.av.tr

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T +90 (212) 280 90 91

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Draft Amendments to the Electricity Market Licensing Regulation and YEKDEM Regulation

On July 30, 2019, draft regulations amending both the Electricity Market Licensing Regulation (Elektrik Piyasası Lisans Yönetmeliği) (the “Electricity Licensing Regulation”) and the Regulation on Documentation of and Support for the Renewable Energy Sources (Yenilenebilir Enerji Kaynaklarının Belgelendirilmesi ve Desteklenmesine İlişkin Yönetmelik) (“YEKDEM Regulation”) were published on the website of the Turkish Energy Market Regulatory Authority (“EMRA”) for public comments. The deadline for submitting comments on these amendments to EMRA is set as August 23, 2019.

The draft Regulation amending the Electricity Licensing Regulation introduces new types of electricity power plant definitions as follows:

  • Combined electricity generation plant (birleşik elektrik üretim tesisi): A single facility established to generate electricity from multiple energy sources connected to the grid from the same connection point.
  • Combined renewable electricity generation plant (birleşik yenilenebilir elektrik üretim tesisi): A single facility established to generate electricity from multiple energy resources (all of which are renewable energy sources) connected to the grid through the same connection point.
  • Combined combustion electricity generation plant (birlikte yakmalı elektrik üretim tesisi): A facility in which sources other than renewable energy sources are used and where the renewable auxiliary source is combusted in the same facility along with the main source.
  • Supplementary resourced electricity generation plant (destekleyici kaynaklı elektrik üretim tesisi): A single facility which utilizes another energy source during the heating conversion process in generation facilities.
  • Multiple resourced electricity generation plant (birden çok kaynaklı üretim tesisi): Combined renewable electricity generation plant, supplementary resourced electricity generation plant and combined electricity generation plant.
  • Main source (ana kaynak): The resource specified in the license application, for multiple resourced electricity generation plants.
  • Auxiliary source (yardımcı kaynak): A resource or resources other than the main resource indicated in the license application for multiple resourced electricity generation plants.
  • Floating Solar Power Plant (Yüzer GES): Generation facility based on solar power installed on water surfaces such as dams, ponds or canals and installed in reservoir areas in between the maximum water elevation and the operating elevation.

In addition to the foregoing new concepts, the draft amendments to the Licensing Regulation also include principles for licencing of these newly defined plants.

  • The auxiliary source unit used in multiple resourced electricity generation plants will be deemed as a unit of the main source plant, and therefore, the plant will be evaluated as one unit, for pre-licensing and licensing purposes.
  • In combined electricity generation plants and the combined renewable electricity generation plants, the auxiliary sources cannot be converted to a main source.
  • There is no requirement to satisfy the measurement requirements for pre-licensing, for combined electricity generation plants and combined renewable electricity generation plants
  • A consent shall be obtained from the Directorate of State Hydraulic Works for a pre-licensing application relating to establishment of floating solar power plants and other facilities based on renewable energy sources which will be established on the facility area inserted into the pre-license based on hydraulic resources.
  • An amendment application for the purposes of converting a plant subject to a pre-license to a multiple resourced electricity generation plant, shall only be accepted if (i) the site does not go beyond the pre-licensed site, (ii) the total installed capacity for the electricity power does not change, (iii) the existing connection lines, connection ports and voltage levels do not change, (iv) the Directorate General of Energy Affairs General consents to the technical evaluation for wind or solar energy and the Directorate of State Hydraulic Works consents for hydraulic energy pre-licensing.

Furthermore, the draft amendments to the Licensing Regulation also provide that the receivables of the legal persons holding generation licenses, incurred before the Energy Exchange Istanbul (EPİAŞ) (Enerji Piyasaları İşletme Anonim Şirketi) may be subject to an injunction or deduction, for the purposes of collecting their payment obligations arising from their failure to fully or partially satisfy the requirements set forth in the YEKDEM Regulation, on the condition that such failure is based on a court decision.

The draft amendments to the YEKDEM Regulation also sets forth that the licensing fees for combined renewable electricity generation plants and combined electricity generation plants shall be calculated by adding up the installed capacity for both the main source and auxiliary source. It envisages that the net amount of energy generated by the combined renewable electricity generation plants, will be evaluated at the minimum price determined for renewable energy resources used in the generation facility and within the scope of the Renewable Energy Source Support Mechanism (YEKDEM) for the remaining generation time of the facility. If all energy resources used in the supplementary resourced electricity generation plant are renewable resources, then the net energy amount generated and supplied to the system will be evaluated at the price determined for the main source used in the generation facility and within the scope of YEKDEM for the remaining period of the main source unit. If the generation facilities within the scope of YEKDEM are transformed to two of the above mentioned facilities, then YEKDEM will not make any amendments to the utilization period.

Comments on the draft regulations may be submitted to EMRA through epdmpim@epdk.org.tr e-mail address in the form made available at https://www.epdk.org.tr/Detay/Icerik/20-0-0-659/elektrik-piyasasi-lisans-yonetmeligi-ve-yenileneb by August 23, 2019.

 

This information is provided for your convenience and does not constitute legal advice. It is prepared for the general information of our clients and other interested persons. This should not be acted upon in any specific situation without appropriate legal advice. This information is protected by copyright and may not be reproduced or translated without the prior written permission of Ergün Avukatlık Bürosu.