The Regulation on the Procedures and Principles Regarding the Use and Leasing of Water Surfaces in the Installation of Floating Solar Power Plants (“Floating SPP”) (the “Regulation”), which was issued by the Directorate General of State Hydraulic Works (“DSİ”) on December 10, 2025, establishes a comprehensive legal framework governing the use and leasing of water surfaces for Floating SPPs in Türkiye.

1. Categories and Priority Order

Floating SPP projects are evaluated in four categories: (i) meeting the energy needs of irrigation facilities managed by DSİ or irrigation unions, (ii) supplementary resource for hydroelectric power plants, (iii) YEKA projects, and (iv) for unlicensed electricity generation by municipalities or their affiliates. In the event of multiple applications for the same reservoir or site, order of priority shall be applied as follows: (i) irrigation facilities, (ii) supplementary resource projects, (iii) YEKA projects, and (iv) municipal projects for unlicensed electricity generation.

2. Financial Obligations

Legal entities developing a Floating SPP project must sign a lease agreement with DSİ. The lease fee is calculated by a formula determined by DSİ based on parameters such as the water surface area of the reservoir or canal, installed capacity, annual average energy production value, and Market Clearing Price (PTF). In the event of using areas other than the canal surface, an additional fee shall be applied for these areas. Permission is granted for the free-of-charge use of the water surface via a protocol to be signed for Floating SPP facilities to be established by irrigation unions for the purpose of meeting the energy expenses of agricultural irrigation facilities. Furthermore, it is mandatory to provide collateral based on the installed capacity to secure the return of the project site in the condition it was leased. The first lease fee for the area leased for the Floating SPP facility shall be paid to DSİ in advance within 5 (five) working days from the contract signature date. Lease fees for the following years shall be paid within 5 (five) business days from the starting date of each lease period, taking into account the contract date.

3. Technical and Environmental Standards

Detailed technical criteria regarding the installation of Floating SPP have been introduced. Provisions such as prohibited zones for dam safety, area limitations in the use of the reservoir water surface, floating island sizes (cannot exceed 10 hectares in the reservoir), distances between islands, and the obligation to comply with material standards to protect water quality have been regulated.

4. Operation and Responsibility

All technical, environmental, social, and economic risks during the planning, construction, and operation phases belong to the legal entity. DSİ has full authority to determine the reservoir and canal operation plans, and no right or compensation can be claimed due to changes made. For expenses incurred by the legal entity regarding the leased areas, the legal entity cannot make any claims against DSİ and other relevant institutions.

5. Transition Period

Existing projects for which the feasibility report was approved or a lease agreement was signed by DSİ before the Regulation’s entry into force must be brought into compliance with the new provisions by March 10, 2026.

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.