Decision Concerning Unlicensed Generation Applications Relating to Solar Plants which are Connected to the Same Measurement Point with their Consumption Facilities and Treatment of Surplus Energy

In today’s (18.01.2018) Official Gazette a decision of Energy Market Regulation Authority (“EMRA”) has been published relating unlicensed generation applications relating to solar plants which are connected to the same measurement point with their consumption facilities and treatment of surplus energy (“Decision”). The Decision has been published on the basis of Art. 7 subsection 6 of Regulation as to Unlicensed Electricity Generation in the Electricity Markets (“UGR”) which was amended yesterday.

In order to understand the subject matter of the Decision, it would be useful to recap the relevant article of the UGR by providing an English translation of the relevant article. The readers should be warned, however, there is no official English translation of the UGR and, divergent interpretations may sometimes arise out of linguistic technicalities.

“The format of Invitation Letter for Connection Agreement, application and procedures and rules pertaining treatment of surplus energy with respect to the generation plants based on renewables and which are directly connected up to the capacity laid down in the connection agreement of its consumption facility, for which the Ministry or other institutions authorised by the ministry have approved preparation of model projects up to 10 kW will be set out by EMRA. Applications which will be filed in this context with respect to the plants based on wind power or solar energy will be treated outside of the capacity allocated to wind or solar plants as per Art. 5/1(c) UGR.”

The referred Art. 5/1(c) is as follows:

“Plants which may be installed without being subject to the requirements of preliminary license, license and incorporation are as follows:

[…]

c) Plants based on renewable energy installed power of which are not greater than 1MW or than the limit set forth by the Council of Ministers as per Art. 14 of Electricity Market Act (“EMA”) […]”

Therefore, the Decision is essentially aimed at setting out details and provisions regarding implementation of these two provisions according to the first article of the Decision defining the Decision’s scope.

As per the 4th Article of the Decision, application under the said decision should be accompanied with the documents listed under Appendix — 1 which are as follows:

• Unlicensed generation application form
• For natural persons, id cards and their copies. For judicial persons authorisation certificate and or notarised copies of it of natural persons who are authorised to bind the judicial entity.
• With respect to the premises on which the generation facility is to be installed:

1. For detached buildings, land register or lease agreement or document evidencing the use right of the place of the consumption facility with which the generation facility is associated.
2. For buildings which are used by multiple persons, notarised copy of the decision authorising the applicant to install solar plant.

• With respect to consumption facilities:

1. Singular code for the existing consumption facilities
2. Construction permit or a substitute document for the consumption facility which is planned to be constructed.

The Decision also regulates details of the application procedure, conditions of connection application for system usage, commissioning, determination, invoicing and treatment of surplus energy.

Those who are interested in installing such plants may contact our law firm for further detailed information as to regulatory effects of the Decision and other regulatory issues that may be related with such power plants.