New Electricity market law in Turkey

yeni electricity market law tr

Summary

Introduction of a pre-licensing procedure for the pre-construction stage

• Relevant permits, approvals, licenses, ownership or usufruct right of the area must be obtained in pre-licensing period, which is 24 months max.
• No ‘generation license’ is converted into a ‘preliminary license’. Current license applications will be considered as preliminary license applications.
• Any direct or indirect share transfer at the preliminary license period is prevented.

Organization of Electricity Market Operation Activities

• Day-ahead markets and intra-day markets are operated by EPIAS (Energy Markets Operation Company) instead of PMUM
• Standardized electricity contracts and derivative markets are operated by Borsa Istanbul (Exchange Istanbul) instead of VOB
• Balancing power market and ancillary services markets are organized and operated by TEIAS (System Operator)
• No need for a ‘generation license’ if installed capacity is under 1 MW; can be increased to 2.5 MW by Council of Ministers
• Extended deadlines for 50% discount on the transmission system utilization fee and stamp duty exemption

Privatizations

• EÜAŞ companies, which are to be privatized, have time to complete all required environmental permits until 31 Dec 2018.
• Transfer, merger or demerger activities as a part of the privatization of generation and distribution companies are exempt from Corporate Tax and VAT until 31 Dec 2023.

Changes in types of licenses

• ‘Auto-production license’ will be abolished and converted into ‘generation license’
• Wholesale and retail sale activities are joined under ‘supply license’