The amendments to the Regulation on Unlicensed Electricity Generation (“Amending Regulation”) published in the Official Gazette dated 25 November 2025 and numbered 33088 introduce a comprehensive transformation that all market participants should carefully monitor. We are of the view that the wide range of revisions; from connection opinion procedures and installed capacity increases to the technical assessment reports concerning the association of generation and consumption facilities; aim both to strengthen implementation consistency and to reduce uncertainties within the unlicensed generation regime.

The Amending Regulation further provides that the database system to be created by the market operator for storing the data to be prepared in relation to priority assessment procedures will be made available for use by grid operators on 15/12/2025.

As Kesikli Law Firm, we have prepared a detailed study addressing all amended provisions. In this work, you will find an analysis of the new regulatory framework which significantly reshapes both the technical and legal dimensions of the unlicensed generation regime ;including application processes, time-bar periods, YEKDEM practices, overlap/interaction analyses and the implications of transitional provisions.

Article 4- Definitions

Art. 4/1-t

The term “technical evaluation report” previously referred only to wind and solar energy. Following the amendment, it now denotes the report prepared as a result of the evaluation conducted by the General Directorate of Energy Affairs (“EİGM”) regarding applications based on geothermal, biomass, wind or solar energy sources.

Art. 4/1-ü

A new provision has been added to the definition of YEKDEM. Accordingly, following the amendment, it refers to the support mechanism benefiting renewable generation license holders who procure energy directly or through an aggregator, as well as individuals generating renewable energy under this Regulation, through the Relevant Supply Company (“GTS”) located in their respective regions.

Article 7/15 – Connection Principles

Subject to the provisions of Articles 16/1-b and 30/8, no unlicensed generation application may be submitted for a pre-license area or for a generation facility site that is the subject of a generation license application; if submitted, such applications shall be rejected. With this amendment, it is observed that unlicensed applications overlapping with licensed areas will no longer be accepted.

Based on Article 16/1-b

For a pre-license area or a generation facility site that is the subject of a generation license application, EİGM shall carry out an evaluation. If there is any overlap/interaction within the plant site or any wind turbine interference, the grid operator shall grant the applicant the right to file a revision application, provided that the connection is made from the same transformer substation or within the same transmission region.

Based on Article 30/8

Where an unlicensed generation facility is established at the same site as a licensed generation facility and connected through the same metering point, the delivery direction of the connection and system-use agreements must be zero. In the presence of any energy flow to the grid, the electricity generated shall be deemed a free-of-charge contribution to YEKDEM.

Article 10 – Application Submission

Except for cases of inheritance and bankruptcy, where facilities falling under Article 5/1-h (generation facilities based on renewable energy sources established at the same or at a different metering point as the consumption facility) are transferred, no new application may be submitted under this Regulation for consumption facilities associated with the transferred generation facility; and if the generation facility and the consumption facility are transferred to the same person, this paragraph shall not apply. Transfers between public institutions and organizations shall also fall outside the scope of this paragraph.

For persons falling within the scope of Article 5/1-h, if a call letter for the connection agreement has been issued, the provisions of Article 34/4 governing Prohibitions and Sanctions (such as the elimination or initial absence of the conditions forming the basis of the application, leading to the cancellation of the agreement) shall apply.

Article 14 – Technical Evaluation of Applications

The Amending Regulation provides that; except for wind and solar applications, if the technical assessment under this article is found to be appropriate irrespective of the capacities announced by TEİAŞ, a positive connection opinion shall be issued.

Except for simultaneous wind and solar applications, the provisions of Article 6 (which governs the priority assessment and sequencing of connection requests for wind- or solar-based generation facilities by the relevant grid operator) shall apply when there is more than one application for other types of generation.

However, if TEİAŞ has announced capacity for wind and solar and there are applications based on other energy sources, such applications shall be processed within the scope of the priority allocated to wind and solar capacity.

Paragraph 9 has been added to Article 14. Accordingly, in the priority assessment under Article 6, if a consumption facility for which a call letter for the connection agreement has previously been issued becomes the subject of a new application, the consumption amount previously allocated for that facility shall not be taken into account in the new application. Instead, it shall be recalculated on the basis of the principal consumption amount specified under Article 6(b).

Article 15 – Issuance of Connection Opinion and Call Letter for the Connection Agreement

With the Amending Regulation under Article 15/1-d, geothermal and biomass have now been brought within the scope of this provision. No changes have been made with respect to applications based on hydraulic resources, and in such cases, the relevant persons shall be notified within five (5) business days following the issuance of the call letter, and a notification shall be submitted to the provincial administration by the relevant grid operator.

Article 16 – Amendments and Technical Evaluation Processes

Amendments have been introduced to Article 16/1, and subparagraphs (a), (b) and (c) have been added.

Art. 16/1-a

For applications based on geothermal, biomass, wind or solar energy sources, following the determination that the application is technically eligible, the technical evaluation form shall be entered into the Renewable Energy Projects Evaluation and Monitoring System (“YEPDİS”) within ten (10) days and subsequently submitted to the General Directorate of Energy Affairs (“EİGM”). The technical evaluation report shall be prepared within thirty (30) days and sent to the relevant grid operator. If any non-compliance is identified, the applicant shall be notified, and correction of such non-compliance shall be expected within ten (10) days following the notification. A corrected application shall be submitted by the applicant within the prescribed period.

Art. 16/1-b

If, following EİGM’s evaluation, turbine interference or any overlap/interaction within the plant site is identified, Article 30/8 shall apply (relating to unlicensed generation facilities to be established at the same site and connected through the same metering point as licensed facilities). In such cases, the applicant may establish an unlicensed generation facility, provided that the facility is connected at the same metering point, and the connection and system usage agreements shall require that the delivery direction be zero. In the presence of any energy flow to the grid, the electricity generated shall be deemed a free-of-charge contribution to YEKDEM.

Without prejudice to such provisions, the applicant shall be granted the right to submit a new application, provided that the connection is made from the same transformer substation or within the same transmission region.

Art. 16/1-c

If no site-change or revision request is submitted within ninety (90) days from the date of the notification under subparagraph (b), the application shall be returned to the applicant.

Art. 16/2

For geothermal, biomass or solar-based applications for which the technical report is deemed positive, the call letters shall be notified to the relevant parties within ten (10) days.

Art. 16/3

No amendment has been made to the article concerning wind-energy–based applications.

Article 17 – Application for the Connection Agreement

Art. 17/6

The phrase “applications submitted on integrated parcels or parcels associated with the same consumption facility shall be evaluated within the scope of installed capacity increase” has been added.

Art. 17/6-b

Where a positive opinion is issued for generation facilities applying for an installed capacity increase, an additional ninety (90) days shall be added to the periods set out in paragraph 1. We note that the statement “failure to apply within the prescribed period may result in the loss of the right to execute the connection agreement” has been removed by the amendment.

Art. 17/6-c

For generation facilities that have signed a connection agreement but have not yet completed their acceptance procedures, a period of one year shall be granted from the date of notification of the favorable opinion regarding the installed capacity increase request in order to complete the acceptance procedures.

If the remaining period granted for completing the acceptance procedures prior to the capacity increase connection agreement acceptance is shorter than the one-year period granted for the acceptance of the capacity increase, the remaining period for the completion of the acceptance of the generation facility shall prevail for completing the acceptance of the capacity increase.

Art. 17/6-ç

Where a capacity-increase request is submitted for a generation facility whose acceptance procedures have been completed and a positive opinion has been issued by the commission, a period of one (1) year shall be granted to fulfil the obligations under the revised call letter for the connection agreement under the second paragraph. If the revised connection agreement is executed, an additional period of one (1) year shall be granted to complete the acceptance procedures relating to the capacity increase.

Art. 17/6-d

For capacity-increase applications, failure to submit the required documents within the period granted for the call letter for the connection agreement may result in the loss of the right to execute the connection agreement for the capacity increase; however, the validity of the call letter or the connection agreement already in force shall continue.

Art. 17/6-e

If the acceptance procedures for the capacity increase are not completed within the prescribed period, the call letter for the capacity increase, the connection agreement and the allocated capacity shall become null and void; however, the call letter and connection agreement issued prior to the capacity-increase application shall remain valid.

Article 19 – Commissioning of Generation Facilities and System Use

A new subparagraph (ç) has been added to Article 19/1. Accordingly, for generation facilities falling under Article 5/1-h, the obtaining of the permits and approvals required to commence the investment, as well as the completion of the acceptance procedures, must be finalized within three years from the date of execution of the connection agreement in order for the generation facilities to be connected to the grid.

Article 26 – Monthly Netting Application

Following the amendment to the Regulation, Article 26/8 has been abolished. Accordingly, where the consumption facility associated with the generation facility procures energy under a bilateral agreement as a free consumer, notification shall be mandatory in the event of a change of supplier; otherwise, the paragraph stipulating that monthly netting shall not be applied has been repealed.

Article 28 – Consumption Facilities

Amendments have been introduced to Article 28/5, and subparagraphs (a) and (b) have been added. Accordingly:

Where a subscription change is requested for consumption facilities associated with the generation facility:

Art. 28/5-a

The contractual capacity specified in the connection agreement shall not be lower than the installed capacity of the generation facility.

Art. 28/5-b

Within the scope of the priority assessment under Article 14/6-b, for persons holding a call letter and having executed the connection agreement who request a subscription change, the annual total electricity consumption of the consumption facilities associated with the generation facility shall not be lower than the consumption amount forming the basis of the application.

Art. 28/6

The paragraph concerning subscription change under Article 28/6 has been repealed with the Amending Regulation.

Art. 28/8

Following the amendment to Article 28/8, and without prejudice to Article 28/5-b (regarding subscription changes), for generation facilities whose acceptance procedures have been completed and placed into operation, if the contractual capacity in the connection agreement of the consumption facilities associated with the generation facility becomes lower than the installed capacity of the generation facility, the electricity generated during the relevant period shall be considered as a free-of-charge contribution to YEKDEM.

Article 30 – Practices Concerning Consumption Needs

With the Amending Regulation, Article 30/4 has been repealed. Accordingly, the provision which imposed an obligation on the unlicensed generation owner to notify in cases where the consumption facility associated with the generation facility procures energy under a bilateral agreement as a free consumer and subsequently changes its supplier has been abolished.

Article 37 – Other Provisions

Art. 37/7

An amendment has been introduced to Article 37/7. Accordingly, except for wind and solar generation facilities that may be established under Article 5/1-c , in cases where the legal entity owning an unlicensed generation facility wishes to merge; together with all of its assets and liabilities; into its own legal entity or into another legal entity, such merger may be carried out under the applicable legislation, provided that the acceptance of the entire generation facility has been completed. The documents related to the transaction shall be submitted in writing to the Relevant Supply Company (“GTS”) by the relevant grid operator within five (5) business days.

Art. 37/8

An amendment has also been introduced to Article 37/8. Accordingly, for wind and solar-based generation facilities established under Article 5/1-c, within the scope of this Regulation, where the owner wishes to split the legal entity in whole or in part; provided that the acceptance of the generation facility has been completed; such division shall be carried out pursuant to the applicable legislation.

Provisional Article 11 – Procedures Regarding Priority Assessment

Art. 1/a

This paragraph has been added following the amendment to the Regulation. Accordingly, the data relating to consumption facilities associated with the generation facilities falling under Article 10/5 shall be kept up to date on a monthly basis by the relevant grid operator and shall be communicated to the market operator. The information shall be stored in a data repository, and the system to be developed by the market operator within this scope shall be made available for use on 15/12/2025.

Art. 1/b

This paragraph has been added following the amendment to the Regulation. Accordingly, the data to be used in the priority assessment under Article 14 shall be reported to the market operator. The information shall be stored in a data repository, and the system to be developed by the market operator within this scope shall be made available for use on 15/12/2025.

Provisional Article 12 – Assessment of Applications on Integrated Parcels

Art. 12/1

This paragraph has been added following the amendment to the Regulation. Accordingly, for facilities planned to be established under a call letter or connection agreement issued pursuant to this Regulation and whose acceptance procedures have not yet been completed as of 12/05/2019, applications submitted on integrated parcels or parcels intended to be associated with the same consumption facilities shall, upon the request of the relevant persons, be evaluated within the scope of installed capacity increase.

In the event of a revision, the time periods set forth under Article 17/6 (connection agreement application article) shall apply.

Conclusion

These amendments affect numerous critical areas ranging from connection processes to the relationship between generation and consumption facilities, and the prioritisation mechanisms applicable to capacity-increase requests. The practical implications of the Regulation, as well as the secondary adjustments and technical procedures to follow, will become clearer in the upcoming period.

As Kesikli Law Firm, we will continue to closely monitor developments and keep you informed.

 @Zeynep EMİROĞLU