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Electricity Law Update: Amendments to Electricity Market License Regulation

1. The Regulation Amending the Electricity Market License Regulation

Having been published on the Official Gazette No. 31199 dated 28.07.2020, the Regulation Amending the Electricity Market License Regulation brings important changes to the Electricity Market License Regulation dated 02.11.2013.

The Amending Regulation renews the required conditions for license amendment applications for transformation of power plants to power plants using multiple energy sources. Amending Regulation also determines the terms and conditions applicable to building of joint power plants or supportive sourced power generation plants using geothermal sources and coal fire.

2. Applications for Transformation of Power Plants subject to Pre-License to Power Plants with Multiple Sources

According to the amendment made to the Article 18/12 of the Regulation; applications submitted for transformation of power plants subject to pre-license, to power plants using multiple sources will be found compatible by the Electricity Market Regulatory Board (the “Board”) provided that the following conditions are fulfilled:

a) The site mentioned in the pre-license is not extended,

b) The total installed capacity of the power plant mentioned in the pre-license is not changed,

c) Existing connection form, connection point and voltage level are not changed,

d) Relating to the wind or solar energy supportive sourced pre-licenses, technical evaluation conducted by the Energy Affairs General Directorate is found compatible,

e) Compliance opinion is granted for pre-licenses subject to hydro-electrical sources by the General Directorate of Hydraulic Affairs

According to the provision added to the relevant article; pre-license amendment will be made provided that the following obligations are fulfilled by the license holder within the time-period determined by the Board’s compatibility decision:

a) Submission of information and documents ensuring that the minimum company capital and amount of security are amended to comply with the amounts stated in the Board decision no later than the time period stated therein or in the major service unit transaction; and submission of the document ensuring that the applications to the relevant institutions were made for receiving the necessary decision subject to Environmental Impact Evaluation Regulation within one-month from the receipt of either of the Board decision or the major service unit transaction document to the Electricity Market Regulatory Authority (the “EMRA”) within the scope of the Article 18/5 of the Electricity Market License Regulation,

b) Submission of the document in relation to the application made to the relevant institutions for obtaining the Technical Interaction Consent for wind power plants; and

c) Submission of the document demonstrating that the application is made for execution of the lease agreement with the General Directorate of Hydraulic Affairs for the floating solar power plants or the units to be established on drain surfaces or on areas between maximum water level and operation level in reservoir areas of the hydro power plants.

3. Applications for Transformation of Licensed Power Plants to Multiple Sourced Power Plants

According to the amendment made to the Article 24/17 of the Regulation; applications submitted for transformation of power plants subject to pre-license, to power plants using multiple sources will be found compatible by the Board provided that the following conditions are fulfilled:

a) The site of the power plant provided is not extended,

b) The total installed capacity of the power plant mentioned in the license is not changed,

c) Existing connection form, connection point and voltage level are not changed,

d) Relating to the wind or solar energy supportive sourced licenses, technical evaluation conducted by the General Directorate of Energy Affairs on is found compatible,

e) Compliance opinion is granted for licenses subject to hydro-electrical sources by the General Directorate of Hydraulic Affairs

According to the provision added to the relevant article; license amendment will be made provided that the following obligations are fulfilled by the license holder within the time-period determined by the Board’s compatibility decision:

a) Submission of information and documents ensuring that the minimum company capital and amount of security are amended to comply with the amounts stated in the Board decision no later than the time period stated therein and further information and documents ensuring that the relevant resource utilization agreement is amended or that there is not a necessity for such an amendment and submission of the required decision within the scope of the Environmental Impact Evaluation Regulation within one-month or within the time determined in the decision or in the relevant major service unit transaction document to the Electricity Market Regulatory Authority (the “EMRA”) within the scope of the Article 24/4 of the Electricity Market License Regulation,

b) Submission of the document in relation to the application made to the relevant institutions for obtaining the Technical Interaction Consent for wind power plants; and

c) Submission of the document demonstrating the application made for execution of lease agreement with the General Directorate of Hydraulic Affairs for the floating solar power plants or the units to be established on drain surfaces or on areas between maximum water level and operation level in reservoir areas of the hydropower plants.

4. Building Joint Power Generation Plant or Supportive Sourced Power Plants in the Geothermal or Coal-Fired Power Plants

According to the 4th sub-paragraph added to the Article 30 of the Regulation determining the rights and obligations of the license holder; unit(s) dependent on the supportive resources within the area embedded to the plant boundaries may be established within the scope of establishment of joint renewable power plants within the geothermal power plants to meet the internal needs of the relevant plant subject to the Terms and Conditions on Determination of the Plant Boundaries of the Power Plants subject to Pre-License or Licenses in the Electricity Market.

Additionally, according to the 5th sub-paragraph added to the Article 30 of the Regulation; unit(s) dependent on the supportive resources within the area embedded to the plant boundaries or embedded to the plant area with a corridor within the mining license area may be established within the scope of establishment of joint or supportive sourced power plants within coal-fired power plants to meet internal needs of the relevant plant subject to Terms and Conditions on Determination of the Plant Boundaries of the Power Plants subject to Pre-License or Licenses in the Electricity Market.

5. Provisional Acceptance of Multiple Resourced Power Plants

According to the provisional article added to the Regulation, before 01.01.2021 provisional or final acceptance of the unit(s) dependent on the supportive sources will not be made unless provisional or final acceptance of the units based on the main resource is made.

@Kesikli Law Firm

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