Turkey: Energy and Natural Resources

The expanding of the utilization of renewable energy resources for generating electricity, to benefit from these resources in a secure, economic and qualified manner, to increase the diversification of energy resources, to reduce greenhouse gas emissions, to assess waste products, to protect the environment, and to develop the related manufacturing sector for realizingthese objectives are set forth under Law No 5346, entered into force on 18.05.2005 which is the principal law on renewables in Turkey.

The amendment in the Law dated 29.12.201 has adjourned the definitions of renewable energy resources, biomass and the geothermal resource. Accordingly renewable energy resources are defined as non-fossil energy resources such as hydraulic, wind, solar, geothermal, biomass, biogas, wave, current and tidal energy. Biomass is referred to as the fuels in solid, liquid or gaseous phase obtained from organic waste and from agricultural and forestry products, including the waste products of agricultural harvesting and oil extraction from plants, as well as from the by-products formed after their processing. Geothermal resources have been defined as the natural water, steam and gases comprising melted substances and gases with temperatures permanently higher than the regional. The definition of landfill gas has also been included in the Law as the gas produced in order to obtain energy from other wastes, including garbage

Renewable energy resources within the scope of the law refer to electricity generation resources suitable for wind, solar, geothermal, biomass, biogas, wave, current and tidal energy resources together, with hydraulic generation plants either canal or run of river type or with a reservoir area of less than fifteen square kilometers.

The Law restricts development plans affecting the utilization and efficiency of renewable energy resource areas to be prepared in the public or Treasury territory following the effectiveness date. However, the procedures and principles for the identification, conservation and utilization of geothermal resource areas for electricity generation shall be specified in relevant regulations and announced by MENR to be registered on development plans ex officio.

Legal entities holding generation licenses shall be granted a "Renewable Energy Resource Certificate" (RES Certificate) by EMRA for the purpose of identification and monitoring of the resource type in the purchase and sale of electricity generated from renewable energy resources in the domestic and international markets.

The Law prescribes that the prices in the Schedule I attached to the Law shall be applicable for a period of ten years for existing or future production license holders subject to the RES Support Mechanism between the dates of 18.05.2015 and 31/12/2015. However, RES certified generation facilities after 31/12/2015 are subject to the amount, price and period of time to be determined by the Council of Ministers, providing the prices not to exceed prices given in the Schedule I.

Those wishing to be subjected to the RES Support Mechanism in the next calendar year are required to obtain RES Certificates and to apply to the EMRA until October 31^st.

Time periods under RES Support Mechanism commence as of the date of operation for facilities that have already been operated, and as per the operation date for facilities to be operated in the future.

The list for who to be subject to the RES Support Mechanism and information on the operation dates, annual electrical energy production capacities and annual production programs of their facilities shall be published by the until November 30 of each year based on the type of resources.

The Market Financial Reconciliation Center shall announce the RES total amount for each invoice period and determines the rate of obligation to be paid by each supplier. The amount of electricity produced from the renewable energy resources within the scope of the Law and the RES Support Mechanism-free amount sold in the market shall not be included in the calculations while determining the rate of obligation. The amount to be paid by each supplier of electricity to the consumers is calculated and invoiced to the supplier and the collections are paid to the entities subject to the RES Support Mechanism on pro rata basis. The annual production amount to be affixed on the licenses of facilities generating electricity based on renewable energy resources is the maximum annual amount that such facilities can generate with their existing installed capacity and their resources.

The real persons and legal entities establishing an isolated electricity generation plant and grid supported electricity generation plant by utilizing hydraulic resources with a maximum installed capacity of 1000 kW for meeting solely their own demands, shall not be claimed to pay the amounts of service for the projects, of which the final designing, planning, master planning, preliminary surveying and first auditing were prepared by either General Directorate of State Hydraulic Works ("DSİé) or General Directorate of Electric Power Resources Survey and Development Administration ("EİE").

Within the framework of the Law;:

• Investments on energy generation facilities;
• Procurement of domestically manufactured electromechanical systems;
• Investments on research and development and manufacturing in the scope of the electricity generation systems by utilizing solar cells and concentrated collectors;
• Investments on research and development facilities for generation of electrical energy or fuels by utilizing biomass resources can benefit from the incentives determined by the Council of Ministers.

Feed-In-Tariffs

Incentives on Local Contribution Basis