Turkish Renewable Energy Law Transitions

Written By Lawyer in Turkey

Most renewable energy developers in Turkey lose out on millions because they miss obscure regulatory deadlines buried in the fine print. While everyone talks about feed-in tariffs and YEK certificates, the real money-makers know it's the transition periods, waiver options, and application windows that determine success.

The critical factors that separate profitable projects from expensive mistakes include:

  • Build-operate-transfer projects sitting in regulatory limbo with little-known waiver mechanisms

  • Tight one-month application windows for YEK Support that catch experienced developers off guard

  • Exemption periods that bought utilities breathing room

  • Biomass definition changes that reset support timelines

  • Auction contribution payments that stay with projects for decades

We're diving into the regulatory maze that Turkish energy lawyers charge premium fees to explain - these aren't the headline-grabbing policies, they're the tactical details that determine success.

Contract Rights and Exemptions

License Waiver Benefits

If you're operating under the build-operate-transfer model for renewable energy but haven't started operations yet, you have an interesting option. You can waive your existing contract rights to benefit from the new renewable energy support mechanisms.

Key benefits:

  • EPDK (Energy Market Regulatory Authority) will issue you a production license

  • Access to potentially more favorable terms under newer regulations

  • Creates a pathway for projects caught between regulatory frameworks

Distribution Company Exemptions

Public distribution companies with retail sales licenses received temporary exemptions with specific requirements:

Exemption details:

  • Duration: Temporarily exempted from renewable energy purchase obligations until January 1, 2007

  • Purpose: Transition period to adapt to new requirements

  • Obligations: Still needed to sign electricity sales agreements with YEK certificate holders who approached them during this period

  • Effective date: Agreements became effective from January 1, 2007

YEK Certificate Requirements

To join the YEK Support Mechanism in 2011, producers faced strict requirements and timelines:

  1. Obtain a YEK Certificate

  2. Apply to EPDK within one month after publication of relevant regulations

  3. Wait for qualification list - support authority published qualifying producers within one month after receiving applications

Regulatory Implementation Timelines

Projection Publication Deadlines

The Ministry faced specific publication requirements:

  • Timeline: Required to publish renewable energy projections within three months after the law came into effect

  • Scope covered:

    • Projects that already had production licenses from EPDK

    • Projects with existing contracts that would obtain production licenses under this law

  • Purpose: Comprehensive approach ensuring all potential renewable capacity was accounted for in national planning

Support Mechanism Registration

Following the law's amendments, regulatory authorities operated under accelerated timelines:

  1. Regulatory authorities: Only three months to issue required regulations for the YEK Support Mechanism

  2. Producers: Just one month after regulations were published to apply for 2011 participation

  3. Result: Accelerated timeline helped quickly establish the market-based support framework

Biomass Resource Eligibility

For facilities generating energy from biomass resources newly included in the definition by the June 2016 amendments:

  • Start date: YEK Support Mechanism timeframes begin from when the production facility enters the support mechanism

  • Not from: Original commissioning date

  • Benefit: Ensures newer biomass technologies receive their full support period despite definition changes

Financial Incentives After 2020

Solar Project Contribution Payments

Auction participation period: May 12, 2014 - April 30, 2015

Key provisions:

  • Projects maintain financial obligations even if operations begin after December 31, 2020

  • Contribution payment amount offered during auction remains binding regardless of later commissioning dates

  • Creates certainty for both investors and regulators about long-term financial commitments

Wind Energy Capacity Allocations

Auction participation period: February 15, 2011 - September 13, 2011

Financial obligations:

  • Must still pay auction-determined contribution fees even if operations begin after December 31, 2020

  • Ensures consistent financial terms for all projects in auction cohort regardless of construction timeline

  • Maintains market fairness across varying project schedules

Payment Continuity Rules

For renewable facilities entering the support mechanism:

  • Payment start: From the date they join the mechanism

  • Duration: Continue for the specified period

  • Special case: Facilities using biomass resources newly added to definition in 2016 receive full support duration starting from mechanism entry

  • Principle: Consistent support periods across different renewable technologies despite varying implementation timelines

Support Mechanism Applications

Application Window Parameters

For YEK Support Mechanism participation in 2011:

  • Application deadline: Just one month after publication of related regulations

  • Submission to: EPDK

  • Consequence: Applications outside this window wouldn't qualify for 2011 support

  • Importance: Highlights need for close monitoring of regulatory developments

Documentation Requirements

Primary requirement during transition period:

  • Essential document: YEK Certificate (Renewable Energy Resource Certificate)

  • Issued by: EPDK

  • Purpose: Verified that electricity was generated from renewable sources

  • Critical for: Accessing feed-in tariffs

  • Timeline: Producers needed certification before applying within specified window

Certification Timeline Rules

During 2011 transition to YEK Support Mechanism:

  1. EPDK requirement: Publish list of qualifying producers within one month after receiving applications

  2. Market benefit: Provided clarity to participants about support recipients

  3. Process goal: Quickly establish which facilities qualified for incentives

  4. Result: Created transparency in renewable energy market during critical transition period

Your Next Move

Turkey's renewable energy regulations might seem complex, but they offer real opportunities for foreign investors who understand the system. The key factors for success:

  • Timing your applications right

  • Knowing which support mechanisms work best for your project type

  • Understanding transition period opportunities

At Atlas Legal Partners here in Istanbul, we help foreign clients work through these regulatory requirements every day. We've seen how the right legal strategy can turn complicated deadlines into competitive advantages.

Questions to consider:

  • What's been your biggest challenge when dealing with Turkish energy regulations?

  • Have you found any unexpected opportunities in the current framework?

Lawyer in Turkey
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Legal Force of Turkish Renewable Energy Law