Daad res legislation in turkey by ali guner tekin 07.09.2017

LEGAL FRAMEWORK FOR RENEWABLE
RENEWABLE SOURCES (RES)FOR ELECTRCITY
GENERATION
IN TURKEY
Ali Güner TEKiN
Lawyer
Ankara, September 2017

AGENDA
 Basic Legislation & Main Organizations
 Historical Background
 Law No. 5346 on Use of Renewable Energy Sources (RES)for Electricity Production
 Law No. 5686 on Geothermal Resources & Natural Mineralized Water
 Law No. 6446 The Electricy Market Law
 Regulations Regarding Renewable Energy Source Areas (RESA)
 Incentives for RES

Sunum planı
3
LAWS:
 Law No. 4628 dated 20.02 2001 "Law on Organization and Duties of the Energy Market Regulatory Authority
(EMRA)" (formerly Electricity Market Law)
 Law No. 5346 dated 10.05.2005 "Law on the Use of RES for Electricity Generation (Renewable Energy Law -
also known as YEK Law)
 Law No. 5627 dated 18.04. 2007 “Law on Energy Efficiency”
 Law No. 5668 of 03.06.2007 “Law on Geothermal and Natural Mineral Waters” (Regulation on geothermal
resources)
 Law No:6446 dated 14.03.2003 "Electricity Market Law"
The secondary legislation related to these laws constitutes regulations, communiqués and EMRA Board decisions.
The following are some of the key regulations related to the sector and the RES.
REGULATIONS:
 Electricity Market License Regulation dated 02.11.2013
 Regulation on Unlicensed Electricity Generation in Electricity Market dated 12.10.2013
 RES Regulation dated 09.10.2016
 Regulation on the Support of Domestic Parts Used in Facilities Producing Electricity Energy from RES dated
24.06.2016
 Regulation on Certification and Support of RES dated 01.10.2013
 Regulation on Renewable Energy Source Areas (RESA) dated 09.10.2016
 Competition Regulation Regarding Pre-License Applications to Establish Production Facilities Based on Wind
or Solar Energy dated 13.05.2017
And more detailed arrangements are made with the notifications issued by the related institutions.
BASIC LEGISLATION ON USAGE OF THE RENEWABLE
SOUCES (RES)FOR ELECTRCITY GENERATION

Sunum planı
4
The main actors in the electricity & renewable energy sector;
 The Ministry of Energy and Natural Resources (MENR),
(particularly General Directorate of Renewable Energy (GDRE))
and its subsidiaries;
 TEİAŞ (PMUM) responsible for entire transmission system ( market operations),
 TEDAS responsible for distribution,
 EUAS, the operator of state owned production companies,
 TETAS responsible for electricity trade
 MTA resonsible for the exploration & tendering of the geothermal sources
 Energy Market Regulatory Authority EMRA, which is a related organization of MENR
 EPIAS the market operator (newly established)
 Apart from these;
 [Ministry of Environment and Urbanization],
 Ministry of Interior (Local Authorities) and
 many other ministries and public institutions and organizations can be a stakeholder in terms of RES
MAIN ORGANIZATIONS RELATED TO RES

Ali Güner Tekin 2017
Restructuring of the Electricity Sector
1994 201520142013201120102009200720052001 2016
Electricity
Market Law
(old) No.
6228
[EMRA]
Splitting TEAS
into
TEIAS,EUAS
and TETAS
RES Law
No. 5436
Energy
Effciency
Law
No:5627
Strategy
Doc. for
Supply
Security
Splitting TEK
into TEAS and
TEDAS
Law No.
6094
Amentment
of RES Law
YEKDEM
RESSM
Electricity
Market Law
(new)
No. 6446
Regulation
on Licensed
Electricity
Production
Regulation
on
Unlicensed
Electricity
Production
2014-2015
Licensed SPP tenders
587 MW
Regulation
on Water
Usage Right
(new)
Regulation
on
YEKA-RESA
New
Strategy
Doc. Acc.
REAP
2017
20.03.2017
YEKA-1
SPP Tender
1,000 MW
21-23.6.2017
WPP Tender
710 MW
Geothermal
Law
No:5627
Law No.
6719
Amentment
of Law 6446
YEKA-RESA
03.08.2017
YEKA-2
WPP Tender
1,000 MW
Regulation
on Support
of Local
Content
Regulation
on Pre-
Licese
Contest for
wind & Solar

 Law No. 5346 dated 18.04.2005 “the Law on the Use of RES in Electricity Generation” is The
basic law regarding the use of RES for electricity generation is (Also called as Renewable Energy
Law).
 The most comprehensive amendment made in the Renewable Energy Law was made in 2010
with the Law No. 6094 dated 29.12.2010 by taking the views of the stakeholders.
 With this law; the scope of RES is defined and terms RES Certificate (YEK Belgesi), RES Support
Mechanism (YEKDEM)and RES Areas (YEKA) areas are introduced.
1. Definition of RES
2. RES Certificate
3. RES Support Mechanism
4. Definition of RESA
5. Other regulations introduced by Law No. 5436
7
LAW NO. 5346 ON USE OF RES FOR THE ELECTRICITY GENERATION

Definition of RES
• RES has been defined as hydropower, wind, solar, geothermal, biomass, gas from
biomass, wave, flow energy and tidal flow energy.
• Although all types of hydroelectric sources, including large dams, are considered
"renewable", HEPPs those are only river-type or canal-type HEPPs and whose
reservoir area is less than 15,000 square kilometers are included in the scope of the
law and are included in support mechanisms for RES.
• The detailed regulations regarding the RES Certificate and the RESSM were made
with the "Regulation on the Certification and Support of Renewable Energy
Resources" published on 01.10.2013.
RES Certificate
• Within this scope, RES Certificate is given by EMRA o the legal persons for the
determination and follow-up of the type of source of the electrical energy generated
from RES traded on the market and for usage of the RESSM of the production license
owner.
8

RES Support Mechanism
• The most comprehensive amendment made in the Renewable Energy Law was made in 2010 with the Law No.
6094 dated 29.12.2010 by taking the views of the stakeholders. With this law, in the Tables I and II in the annex
to the Law tariffs with fixed price guarantee are arranged according to the resource types, while incentives are
given to the use of the domestic equipment.
• It was envisaged to apply fixed price guaranteed tariffs according to resource types in the Tables I and II for the
period of 10 years from the date of entry into operation for the facilities coming into operation until December
31, 2015. This period was extended by CoM Decision until the end of 2020 without changing the tariffs.
• Companies using RES licensed an choose between joining the support mechanism or selling on the electricity
market. However, they have to declare their preferences in October for the next year and they cannot trade on
the market during the relevant year after entering the pool.
• Producer who receive RES Certificate do not pay license fee the first 8 years. In the following years, they pay
only 10% of the license fee.
• The law includes an additional incentive mechanism for domestic and domestic mechanical and / or
electromechanical equipment used in power plants. (Annex II.) These incentives are applied for 5 years from the
date of entry into operation of the facilities.
• The detailed regulations regarding the RES Certificate and the RESSM were made with the "Regulation on the
Certification and Support of Renewable Energy Resources" published on 01.10.2013. 9

Definition of Renewable Energy Source Areas (RESA)
• It is stipulated by law that no zoning plans in public or Treasury lands affecting the utilization
and efficiency of Renewable Energy Source Areas (RESA) shall be made. According to this,
According to this, renewable energy source areas determined by the Ministry will be reported to
the related authorities to be put into zoning plans ex officio.
• Regulation on renewable energy source areas ("YEKA") was made in Law No. 6719 dated
04.06.2016 and in Electricity Market Law No. 6446. Procedures and principles regarding RESA
were later regulated in detail by the RESA Regulation issued on 09.10.2016.
10

Other regulations introduced by Law No. 5436
• When license applications are evaluated by EMRA, production facilities based on renewable energy sources
within the scope of the Law will be given priority in the process of establishing the connection view.
•For final project, plan, master plan, preliminary study or initial survey prepared by DSİ or EİEİ Service no fee
charged from natural and legal persons who are establishing an isolated power generation plant and grid-
assisted power generation plant with a maximum installed power of one thousand kilowatts to meet their own
needs using renewable energy sources only.
• Within the scope of this Law incentives can be given by CoM Decision for; Investments in energy production
facilities, investments in R&D and manufacturing investments within the scope of domestic production of
electro-mechanical systems using solar energy and focusing units, production of R&D facilities for electricity
energy or fuel production using biomass resources.
• As principal, residential units within the borders of provinces and municipalities located in regions where
geothermal resources are sufficient to meet heating needs shall primarily be heated through geo- and solar-
thermal sources.
11

Facilitating measures has been introduced for the acquisition of land to be used for RES-based production
The real estates which are publicly owned or under the disposal of the state and which shall be used for the purposes of building (1)
production facility, (2) roads for transportation and (3) energy transmission lines up to the grid connection point, permission in exchange of a
remuneration shall be granted in form of lease, easement right for utilization by the Ministry of Environment and Forestry or the Ministry of
Finance.
– In the event that the real estate is within the scope of the Pasture Law, such real estate shall be registered in the name of the
Treasury upon changing its allocation purpose and leasing shall be conducted or easement shall be established by the Ministry of
Finance in exchange of remuneration .
– Permission, lease, easement and usufruct permission fees shall be 85% discounted during the initial 10 years of the investment
and operation of power transmission lines, transportation roads until the point of connection to the system specified in their
licenses. The collection of Forest Villagers Development Revenue and Erosion Control Revenue shall not be made.
– The real estate which are under the private ownership of the Treasury and the disposal of the state in its entirety, and situated
in the reservoir area of the hydro electricity generation facilities a utilization permit shall be granted by the Ministry of Finance
without any remuneration.
– Permission will be granted for the establishment of electrical energy production facilities based on RES in national parks, nature
parks, nature monumental and nature preservation sites, preservation forests, wildlife promotion sites, and special
environmental preservation site provided that an affirmative opinion of the Ministry, or of the Regional Conservatory Board in the
case of natural conservation areas, is obtained.
– %1 payment of the operation revenues from facilities on the Properties of the Treasury due to Law no 4706 shall not be
applicable.
12

• The Geothermal Resources and Natural Mineral Waters Law No. 5686 dated 11.12.2007 regulates the
principles and procedures for the exploration, development and production of geothermal and natural
mineral water resources.
• In addition to those made by private individuals with a exploration license by law, in the case of discovery
of geothermal resources on the territory of the General Directorate for Mining Research and Exploration
(MTA) under the scope of Article 16 of the Law, his area shall be tendered by the MTA, an operation license
shall be issued by the relevant special provincial administration (İl Özel İdaresi)and net tender revenue
shall be shared by MTA and special provincial administration equally.
13
LAW NO 5686 ON GEOTHERMAL RESOURCES AND NATURAL
MINERALIZED WATER

General Regulations
With the "Electricity Market Law" dated 14.03.2013 and numbered 6446;
• The name of the "Electricity Market Law" numbered 4628 issued in 2001 was changed as "Law
on Organization and Duties of the Energy Market Regulatory Authority (EMRA)" and the scope
of the EMRA was extended to cover the entire energy sector, as ”Energy Market Regulatory
Authority ” by replacing the word “Electricity “with “Energy” .
• All other provisions of the Law No. 4628 were canceled except for the provisions related to
EMRA.
• With Law No. 6446, the rights and obligations regarding the electricity generation,
transmission, distribution, wholesale or retail sale, import and export, market operation
including those obtained from YEK and all real and legal persons regarding all the activities
hereto are regulated.
• According to the law, production, transmission, distribution, wholesale, retail sale, market
operation, import and export activities in the electricity market can only be carried out under
license. By law, the license types have been simplified, the auto producer license has been
removed from the license types and a new license type has been defined as the Market
Operation License.
• The related issues on pre-license and license were detailed in the Electricity Market License
Regulation issued on 02.11.2013.
14
LAW NO. 6446
LAW ON ELECTRICITY MARKET

ELECTRICITY GENERATION ACCORDING TO LAW NO.6446
LICENSED
GENERATION
ELECTRICITY
GENERATION
LICENSED
GENERATION
UNLICENSED
GENERATION
ROOF
APPLICATIONS
=<10 kW
OTHER
UNLICESED
DIRECT
APPLICATION
RESA METHOD
ISOLATED
FACILITIES
ORGANIZED
INDUSTRIAL
ZONES (OSB)
- CANDIDAT RESA METHOD
- CONNECTION ALLOCATION

Electricity Market License Regulation dated 02.11.2013 issued pursuant to the Electricity Market Law No. 6446 the pre-
license and licenses and rights and obligations of pre-license and license owners are specified in detail:
• the legal entities in the market shall be established as incorporated companies or limited liability companies
and their shares must be registered.
• Pre-license is defined for legal entities applying for production license.
• Changes in the share structure of the companies on the market more than 5%, for publicly traded companies
more than 10% or processes changing the control of the company directly or indirectly are subject to approval of
EMRA.
• For production, transmission, distribution, wholesale and retail sales, import, export and market operation
activities in electricity market it is obligatory to obtain suitable licenses. Principally, for each activity and each
facility separate licenses are required.
• Apart from certain exeptions, the license cannot be transferred.
• The duration of the pre-license is determined by the EMRA depending on the type of resource and the
construction and cannot to exceed 36 months.
• Licenses are granted for production, transmission and distribution for maximum of 49 years and for minimum of
10 years.
• According to the law, the total amount of production that can be produced by the production companies
controlled by any real or private legal person cannot exceed 20% of the total electricity energy production of
Turkey in the previous year.
16
LAW NO. 6446 LAW ON ELECTRICITY MARKET
Electricity Market License Regulation dated 02.11.2013-1

Activities Exempted from Licensing & Establishing a Company (Unlicesened Production)
• Emergency groups and production facility that operates isolated without establishing connection
to the transmission or distribution system.
• RES-based production facility with installed power of up to 1 MW or up to the upper limit of the
installed power specified by CoM Decision (5MW).
• Electricity generation facility established to be used for the disposal of municipal solid waste
facilities and muds treatment plant.
• Co-generation facilities and Micro-cogeneration facilities which provide in the categorization the
productivity value to be determined by Ministry.
• RES based production facility that uses the entire generated energy without giving it to the
transmission or distribution system and whose production and consumption are at the same
measurement point.
also
• Hydropower production facilities to be installed on the water supply lines operated and on the
wastewater transmission lines by the legal entities belonging to the municipality.
Procedures and principles related Production License of the Organized Industrial Zones (OSB) are
regulated by a separate regulation.
17

Application for Pre-License
 For the production activity on the market legal entities must first apply to the EMRA to obtain pre-license.
 It is mandatory for applicants to be established as a joint stock company or limited liability company and
except those who are traded on the stock exchange all their shares must be registered.
 At the pre-license applications it is compulsory to submit a guarantee letter. The amount is determined
by the EMRA by not exceeding 5% of the investment amount per MWm.
 The article of association showing that the minimum capital of the company has been increased at least
to 5% of the investment amount shall be submitted.
 Only 10% of the pre-license fee will be charged from the applicants who apply to obtain the pre-license
to establish a production facility based on the RES.
 Within the scope of pre-license applications, if facility will produce electrical energy from domestic
natural resources;
 For geothermal applications, the right to use or other similar rights have been established or
committed,
 For solar energy applications, the ownership right of the site,
 For hydraulic sources the Water Use Treaty or Water Use Treaty Agreement signed with State Water
Works (DSİ) must be documented.
 In the pre-license applications for solar energy, the installed power of each plant cannot exceed 50 MW.
 Wind, solar, hydraulic, geothermal, biomass-based pre-license applicants are not required to take a
decision within the scope of the Environmental Impact Assessment (EIA) Regulation.
18

Announcement of Capacities
 TEIAS reports every year; for applicants based on wind energy by October 1st, for solar energy
applications by May 1st the capacity for the wind and solar energy-based production facilities to
be connected to the system on the basis of the point of connection and / or on a regional basis for
the following 5 years and for the following 10 years, to the EMRA.
 Within the framework of the announced capacity, the pre-license applications are received by
EMRA for applicants based on wind energy every year in the first 5 working days of April and for
solar energy based applicants every year during the first 5 working days of November.
Obligation for wind and solar measurements (not required at YEKA)
 in the pre-license applications based on
 wind energy it is mandatory at least 1 year measurement in the last 5 years,
 solar energy, it is mandatory in the last 5 years at least 1 year measurement shall be carried
out 6 months of on the facility site.
 It is obligatory to submit to EMRA,the relevant reports for these measurements.
19

Evaluation of pre-license applications
 Applications which have been found to be completed in full are taken into evaluation.
 Opinions are requested from TEIAS and / or the relevant distribution company regarding the
applications.
 TEIAS and / or distribution company shall provide their opinion within 45 days.
 Opinions submitted to the institution are notified to the applicant within 10 working days.
 If the applicant accepts his / her opinions, he / she submits his / her commitment or otherwise
objection to the EMRA within 10 working days. Otherwise, the views are deemed as accepted and
committed.
 The technical evaluation of the applicants shall be completed by GDRE and shall be notified to
EMRA.
 Eligible applicants are sent to TEİAŞ and / or the relevant distribution company.
 The connection point and voltage level of the production facility is determined by TEIAS and / or
distribution company.
Priority if more than one application is made at the same time
 With the exeption of natural gas, priority is given to applications based on (1) domestic coal,(2)
imported coal and (3) renewable energy sources respectively.
 In case of multiple applications based on RES, priority is given to applications based on (1)
geothermal, (2) hydraulic, (2) wind and (2) solar energy sources respectively. 20

Works and procedures be completed within the pre-license period
 if necessary, obtaining the right of ownership or usage of the site & taking the decision of expropriation
 Approval of the zoning plans for the production facility,
 Receipt of preliminary project, project or final project approval.
 Application to TEİAŞ or to the related distribution company for the connection agreement.
 Acquisition of Technical Interference Permission for WPP.
 Taking the necessary decision under the EIA Regulation for applicants based on wind, solar, hydraulic,
geothermal, biomass or other domestic resources.
 Submission of the construction permit for the production facility.
 the following agreements have been made with respect to the production facility;
 Agreement on the right to use of resources for production facilities based on geothermal resources,
 For the production facilities based on hydraulic sources Water Usage Right Agreement with DSI,
 WPP or SPP Contribution Share Agreement signed with TEIAS for production facilities based on wind or
solar energy.
The Contest (Art.15.3ç)
 If more applications are received at the declared capacity to connect to the same port / zone / area, a contest
will be organized by TEIAS to determine the applicants who will be connected to the system.
 TEİAŞ or the related distribution company shall inform EMRA about the connection opinions regarding the
winning applications and the Pre-license procedures shall be continued by the EMRA.
Finalization of pre-license applications
• After the evaluation the applicant is given pre-license by the decision of EMRA and commercial title of the pre-
license owner, duration of pre-license, the information about the place where the production facility is located21

REGULATIONS REGARDING RESA
 In 2016 a comprehensive amendment regarding the RESA was made in the “Electricity Market Law” Law No.6446
by the Law No. 6719 and a new model for allocation of production licenses for the electricity generation from RES
was introduced.
 Detailed provision hereto have been made by the “Regulation on Renewable Energy Source Areas” published on
09.10.2016.
 The aim of the RESA Regulation; forming large scale suitable areas from public and private real estates and
allocating these areas to investors to realize the investments efficiently and rapidly and to provide the domestic
production of the equipment used in the electricity generation facilities to be established here or to provide these
from within the country and thus to contribute to the technology transfer.
 With this regulation provisions are made for; the methods and procedures for determination of RESA, building of
the transmission facilities in these areas by TEİAŞ, allocation of capacity, Allocation of Connection Capacities
against Domestic Production (ACCaDP) and / or Allocation of Connection Capacities against Consumption of
Domestic Commodity (ACCaCDC), the contest to be held for this purpose in form of reverse auction, the
participants of the contest, pre-license/ license applications for electrical energy production facilities to be installed
and sales of electricity.
 Electricity generated at RESA shall be assessed under the RES Support Mechanism for the period given in the
specification and at the price in the RESA Usage Right Agreement.
 within the scope of the RESA Usage Right Agreement domestic product support under the RES Support
Mechanism shall not be applied..
22
REGULATIONS REGARDING RENEWABLE ENERGY SOURCE AREAS
(RESA)

Development of RESA
The works for the development of RESA can be carried out in 2 ways; prior or after the contest for the connection capacity allocation.
I. Method RESA Development by GMRE
 By using this method, GMRE determines that an public or private area should be evaluated as "Candidate RESA", TEİAS is requested
to give its option for connection and to make capacity allocation.
 If the opinion of TEIAS is affirmative, "Candidate RESA" is announced on the website of GMRE and related institutions are notified
for not carrying out any other activities or arrangements regarding this area.
 Technical and economic analyzes are made by GMRE and it is evaluated whether to invest on Candidate RESA.
 If the result is positive, latest within 1 year after the announcement, Candidate RESA will be declared in the Official Gazette as
«RESA» and the Ministry notifies the relevant authorities for taken the RESA into zoning plans ex officio.
 The RESA's are priotized by the Ministry and the RESA which shall be opened for investment is determined.
 If necessary, environmental impact assessment, geological and geotechnical surveys, expropriation, mapping and zoning studies and
transmission infrastructure works are completed in order to make RESA ready for investment.
II. Method Connection Capacity Allocation Method for RESA
 The Ministry may prefer the Connection Capacity Allocation Method for RESA to speed up the process and ensure that potential
areas are quickly assessed within the RESA.
 In this method, for the declared connection areas / capacities, a contest for the allocation of connection capacities is made. The
Applicants shall submit their bids in accordance with the specification for the entire connection area /capacity announced.
 The winner submits its proposal for plant areas within the RESA to GDRE within 90 days after signing the RESA Usage Right
Agreement.
 The applicant is requested to propose new areas for the areas that found not suitable. In case that the areas are found suitable for
the connection area and connection capacity allocated, these areas are declared as RESA. It is essential that at least 70% of the
allocated capacity is used.
 In this method area selection, necessary studies and permits are completed by the winner of the contest. The Ministry cooperates
on the basis of goodwill for the procedures necessary for the preparation of RESA for the investment.
 All necessary expenses needed for the preparation of RESA for investment belong to the winner. 23
(RESA)

Acceptance, Examination, Finalization of the Applications and Signing of the Usage Agreement
 The Announcement of the contest is published in the Official Gazette and on the website of the General
Directorate.
 The ceiling price for the contest determined by the Ministry shall not exceed the total of the price in the tables of
the Law 5346.
 The minimum share ratios of the Turkish citizens and the Technology Provider in the legal person or in the joint
venture participating in the contest shall be defined in the specification. The partnership structure shall be
presented as detailed on real person basis to show the share of the Turkish citizen.
 Those who want to apply for the Allocation of Connection Capacities against Domestic Production (ACCaDP)
and / or Allocationof Connection Capacities against Usage of Domestic Commodity (ACCaUDC) shall submit the
necessary documents in their technical proposal to GDRE.
 Contest Commission, consisting of a chairman and at least 4 principle and substitute member from the
institutions / organizations to be determined by the Ministry, with the single number, shall be formed by the
Minister’s approval.
 The Commission opens the bids in presence of the applicants to check the documents. Applications, of which
documents are found incomplete and / or incorrect shall not be evaluated.
 The Commission shall complete the detailed document review and determine the applicants who have obtained
the right to participate in the competition within 20 days. The Commission may extend this period up to 20 days.
In this process, applicants may be given a one-time opportunity for correction and explanation.
 Following the completion of the detailed document review, date of the contest shall be published at the General
Directorate website at least 3 days in advance and the participants shall be informed
24
(RESA)

Finalization of the use right contest
 At the place, date and time specified in the announcement made for the contest, the envelops of the financial bids
shall be opened by the Commission, in the presence of the representatives of the applicants who have obtained
the right to participate in the contest.
 The contest shall be made according to reverse auction method starting from the electricity ceiling price per
kilowatt-hour announced.
 The reverse auction is held among maximum five financial proposal owners.
 Letters of guarantee belonging to bids other than the most advantageous first three bids are returned within 3
working days.
 The contest is finalized with the Minister's approval and the lowest first tenderer is invited to sign RESA Usage
Agreement.
Signing of RESA Usage Agreement
 The first lowest tenderer shall sign the RESA Usage Right Agreement within 30 days, if not signed, the guarantee
letter shall be recorded as income and the second and third tenderers shall be invited respectively.
 The winner of the contest submits the Trade Registry Gazette, the partnership structure, the guarantee letter
issued in the name of the legal person, work programs belonging the electricity energy production facilities and in
case of Allocation against Domestic Production the work programs for the factory to GDRE before signing of RESA
Usage Right Agreement
25
(RESA)

Pre-License Program
 It is compulsory to obtain pre-license and production license in order to be able to carry out energy production
activity within the scope of RESA Usage Right Agreement.
 The legal person entitled to make pre-license application and its connection capacity are notified to EMRA to be
granted pre-license.
 It is obligatory that the winner of the contest to apply for an pre-license to EPDK within 45 days from the date of the
signing of the RESA Usage Right Agreement,
 In case that the Method of Allocation of Connection Capacity for RESA is used, from the date when the proposals by
the winner of the contest are found suitable by GDRE and those announced in the Official Gazette and RESA
notified to EMRA.
 If the pre-license application is not made within the period, a penalty amount shall be charged at the ratio of the
not applied installed capacity of the RESA to the total capacity of the RESA .
 In the event that the total capacity of the RESA applied for pre-license is less than 70% of the capacity allocated
under the RESA Usage Right Agreement, the RESA Usage Right Agreement shall be annulled by the Ministry and the
guarantee letter shall be recorded as income.
 By determining of deficiencies of the applicant, if any, and completing these deficiencies within a period of 3 months
given, the pre-license shall be granted .
 By completing the required works and transactions within the scope of the Electricity Market License Regulation,
the application for the production license shall be made within the period set for the pre-license in the specification.
Licensing process
 Within the scope of the AaDP, In case that the factory is taken into operation within the time period and the
obligations under the License Regulations are fulfilled, the holder of the pre-license apply to EMTA for the license.
EMRA continues the licensing transactions with the letter of conformity of the General Directorate. 26
(RESA)

Factory
If the allocation made with ACCaDP method, a factory for the domestic production of equipment to be used by building of the production facility, shall
be taken into operation within the time period given in the specification.
In this case, within the period set in the specification, the required documents related to the factory shall be completed and presented to the General
Directorate:
- Local Content Certificate belonging to the equipment regarding that local content rate is met and that it is incompliance with the technical standards.
- Certificates and documents that the domestic equipment conform to the technical standards.
- The maximum installation period of the factory to be installed within the scope of the ACCaDP is declared in the specification. Within the framework
of the detailed work schedule of the Factory submitted Third party surveillance service shall be taken on the conditions defined in the specification.
- In case the factory cannot be taken into operation within the given period, the Ministry shall terminate the RESA Usage Right Agreement and the
guarantee letter shall be recorded as income.
- In the case of delays in the work program submitted under the ACCaUDC, if these delays exceed 20 working days in any work item, the legal persons
holding the pre-license shall be notified in writing. In the event that it is understood that the delay of the work schedule within the scope of AaUDC
will reach up to 18 months, the RESA Usage Right Agreement shall be terminated unilaterally and the guarantee letter shall be recorded as revenue.
- Work programs may be amended by approval of General Directorate separately and in total not exceeding the periods determined in the
specification.
- Within the scope of the ACCaDP, at the production facility, it is obligatory to use domestic manufactured products specified in the supply plan and
equipment produced by the factory.
- If it is determined that domestic equipment are not used in all RESA, RESA Usage Right Agreement shall be terminated and guarantee letter is
recorded as revenue and liquidation procedures shall be are started according to general provisions.
5. R&D Center
- Applicants who will apply for ACCaDP; perform R&D activities under the conditions and period under the scope of the Law No. 5746 and / or in the
specifications and within the scope of the annual R&D plan to be presented.
- R&D activities shall be initiated by the completion of R&D Center installation within the period given in the specification after signing of the RESA
Usage Right Agreement
27
(RESA)

YEKA – 1 1,000 MW SOLAR CONTEST
Karapınar YEKA-1 SPP Contest
 The tender Karapinar YEKA-1 SPP in the Karapinar Energy Special Industrial Zone with a capacity of 1GW was held on 20.03 2017
 Four groups were participated in the tender, Limak- CMEC- Hareon Solar Joint Venture Group, Kalyoncu- Hanwha Group, Çalık
Enerji-Solargiga Joint Venture Group and AKC Solar Joint Venture Group.
 Kalyoncu- Hanwha Group gave the lowest bid of 0.0699 USD / kWh.
 The scope of project:
 1 GW connection capacity will be allocated for 10 years.
 SPP will produce 1.7 billion kWh per year (600 housing needs).
 The power plant will start generating electricity within 36 months.
 60% of the local rate at the first 500 MW and 70% at the second 500 MW.
 Total investment amount is about 1.3 billion USD.
 Within 21 months, a modul plant with 500 MW capacity will be installed.
 AR-GE investment for 10 years.

YEKA – 2 1,000 MW WIND CONTEST
• The consortium composed of Siemens and two Turkish companies, Turkerler and Kalyon, has been awarded the
tender on 03.08.2017 with the lowest price at USD 0.0348 per kWh.
• World’s top wind turbine producers participated in the tender and total of 8 consortia, composed of international and Turkish companies,
submitted bids in the tender.
• Wind turbines will be built in 5 different regions of Turkey. (including Kayseri-Niğde, Sivas, Edirne-Kırklareli-Tekirdağ, Ankara-Çankırı-
Kırıkkale and Bilecik-Kütahya-Eskişehir.
Edirne-Kırklareli-Tekirdağ in Thrace has been assigned 700 MW as the largest unit, where at least 280 MW must be installed)
• Production 3,000 GWh per year. (supplying around 1.1 million households & helping to avoid 1.5 million tons of CO2 emissions annually.)
• Installed capacity of each plant must be at least 50 MW
• Total investment app. USD 1.2 billion
• PPA will last 15 years.
• Factory:
• The winner must build a wind turbine factory in Turkey with the capacity of at least 150 units of 2.3 MW per year within 21 months after
the contract is signed.
• The plants have to start production within 36 months after getting the license.
• The quota for domestically sourced production is 65%
• 90% of employment in the construction and operation of the factory.
• R&D Center:
• R&D work for a total of 5e years in a total of at least 3 of given reseach areas.
• At least 80% of expenses for R&D shall covered domestically.
• A budget of USD 5 million per year has been designated for R&D,
• with 50 full-time employees consisting of 80% domestic engineers.

THANK YOU FOR YOUR ATTENTION
Ali Güner TEKiN
Lawyer
AKTE Law & Consultancy
agtekin@yahoo.com

Daad res legislation in turkey by ali guner tekin 07.09.2017

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