NEW DEVELOPMENTS IN RENEWABLE ENERGY IN TURKEY

The Law amending, among other things, the Electricity Market Law No: 6446 and the Coastal Law No: 3621, is published in the Official Gazette on May 11, 2024. The amendments introduce new opportunities for the potential investors in renewable energy, as well as, new prospects for current investors that have been looking for ways to focus their efforts and resources in other areas.

Pursuant to the temporary provision added into the Electricity Market Law, current investors are granted a right to apply to the Electricity Market Regulatory Authority (“EMRA”) until July 11, 2024, for the cancellation or withdrawal of their licenses, pre-licenses and license applications in the electricity generation, including those related to the Renewable Energy Resources Areas (“YEKA”). Such right also includes the right to apply for downgrading of the installed power capacity by the investors and license-holders. With respect to YEKA areas under the Law No: 5346, the applicants that were awarded the relevant tenders will be allowed to make an application to EMRA until July 11, 2024 for the termination of their respective agreements. Once such cancellation, withdrawal or termination applications are approved, the letters of guarantees or other collaterals submitted by the investors and license-holders will be returned partially or fully. Therefore, the amendments provide an opportunity to the investors and stake-holders to rectify and remedy the status of certain projects which are no longer feasible and instead, direct their resources to other projects.

The amendments also bring new opportunities for certain types of projects. According to the amendments made in the Coastal Law No: 3621, electricity generation plants will be allowed in areas designated as renewable energy resource areas by the Ministry of Energy and Natural Resources, of parts of seas, natural and artificial lakes and lakes created by dams, without the necessity of a zoning plan. Therefore, license-holders holding a generation license or pre-license based on hydraulic resources will be permitted to construct one or multiple electricity generation plants in all such areas, excluding potable water basins and sea shores, without waiting for the implementation of a zoning plan or necessity to obtain a construction license. The same areas will also be open for electricity generation without a license, pursuant to application by irrigation associations or municipalities, subject to approval by State Waterworks General Directorate.