The new regulations for amending the Regulation on Unlicensed Electricity Generation in the Electricity Market ("Amendment Regulation
") and the Communiqué Amending the Communiqué on Unlicensed Electricity Generation in Electricity Market ("Amendment Communiqué
") were published in the Official Gazette on 23 March 2016 which entered into force on the same date.
The amendment has structurally changed unlicensed electricity generation process in Turkey. The most significant changes are;
- Same persons or entities including affiliated or group companies directly or indirectly are no longer own more than 1 MW total installed capacity which will be connected for the same sub-station connection point.
- Share transfers of the company are not available until the provisional acceptance of an unlicensed project is completed.
- A minimum self-consumption ratio is introduced, placing a cap on the excess energy which can be sold to distribution companies.
- New requirements are also introduced for connections, mergers/demergers and application procedures.
It is important to note that certain aspects of the new requirements would not apply to the unlicensed applications which have obtained a connection invitation letter before the amendments entered into force on 23 March 2016.
The Amendment Regulation also changed certain provisions of the Regulation on Unlicensed Electricity Generation in the Electricity Market ("Unlicensed Regulation
"), published in the Official Gazette on 2 October 2013.The Amendment Regulation changed the following important aspects for unlicensed electricity generation in Turkey:
1. Changes regarding to the Connection Rulesa. 1 MW Limitation for Affiliated Companies:
The Amendment Regulation introduces a new restriction whereby each real person, legal entity or group companies is allowed up to 1 MW capacity jointly at each transformer sub-station for unlicensed renewable energy generation purposes. So that, affiliated or group companies can no longer be allocated more than 1 MW of capacity for the same sub-station connection point, regardless of the number of consumption units. Legal entities must present their direct and indirect shareholding structures to the relevant network operator (either TEİAŞ or the regional distribution company) (Article 6(10), Unlicensed Regulation).b. Limitation for Distance to the Grid:
The Amendment Regulation also introduces a limit for unlicensed projects regarding their distance to the grid (Article 6(8), Unlicensed Regulation):
c. Maximum Installed Capacity Limit:
- Projects with up to 0.499 MW capacity must not be more than 5 km from the grid.
- Projects with more than 0.499 MW capacity must not be more than 10 km from the grid.
The Amendment Regulation introduces a minimum self-consumption ratio, which places a maximum limit for the excess energy which can be sold to distribution companies.
In accordance with the new rules, the installed capacity for the unlicensed wind and solar generation projects are not allowed to exceed 30 times more than the capacity of the consumption unit associated with the generation unit (Article 6/12, Unlicensed Regulation).