Having brought significant changes to the Regulation on the Support of Local Content of Renewable Energy Electricity Generation Facilities (the “Regulation), the Regulation Amending the Regulation on the Support of Local Content of Renewable Energy Electricity Generation Facilities (the “Amending Regulation) was published on the Official Gazette No. 31138 dated 24.06.2016.

The changes to the support of local content of renewable energy electricity generation facilities are summarised as follows:

1. Local Content

The Regulation defines local content as the content in which domestically manufactured materials constitute at least 55% of the components utilized in electricity generation.

In the event of a domestic content support application, domestic manufacture committee will be established to control whether the relevant content and/or component is manufactured domestically and/or is used in the electricity generation facility. This Committee shall consist of at least 2 persons who shall be appointed by the Ministry of Energy and Natural Sources (“Ministry”) and/or the institutions authorised by the Ministry.

2. Applicants Benefited from Local Content Support in the Previous Term

According to the Amending Regulation changing the Article 4 of the Regulation, the applicants who benefited from the local content support in the previous term shall submit the required documents in relation with the new units to the Ministry and/or the institution authorised by the Ministry in the event of operation of new units due to increase in capacity, modernisation, renewal or partial acceptance (as applicable).

3. Application Requirements for Biomass

Theoretical report and the letter of undertaking in relation with the cogeneration system used in plants generating electricity from biomass shall be submitted to the Ministry and/or the institutions authorised by the Ministry within the stated time periods according to the Article 4/6 inserted to the Regulation by the Amending Regulation. Plant confirmation report will be submitted to the Ministry within the first year local content support is provided.

The relevant article requires the cogeneration system yield value to be at least 85% and the primary energy source saving rate to be at least 10%. If such requirements are not fulfilled within the aforementioned reports, the relevant cogeneration system will not be eligible to benefit from the local content support.

4. Plants Benefited from the Local Content Support in the Previous Terms

In the event of replacement of the damaged components in the electricity generation plants which benefited from the local content support in the previous terms, the information and documentation in relation to the relevant components shall be submitted to the Ministry and/or the institutions authorised by the Ministry until the next August 1 after the replacement is done according to the amended Article 4 of the Regulation. Otherwise, local content support will not be provided for the relevant components (for all units within the plant). If the relevant damaged component cannot be supplied from the domestic sources due to circumstances preventing domestic manufacture such as strike, lockout etc. the Ministry or the institution authorised by the Ministry shall be informed regarding such circumstance with supporting documents and domestic manufacture may not be required for the relevant component if the Ministry approves such circumstance.

5. Local Content Support Periods will be determined by EMRA

The final date for benefiting from local content support will be determined by Energy Market Regulatory Authority (“EMRA”) subject to the amended Article 6 of the Regulation. According to the paragraph 5 of the relevant article, local content support shall be calculated for each renewable source within United Renewable Electricity Generation Facilities[[1]](https://www.kesikli.com/renewable-energy-law-update-amendments-to-the-local-content-support-regulation/#_ftn1). The last paragraph of the Article 6 of the Regulation provides that, local content support in Supporting Source Electricity Generation Facilities[[2]](https://www.kesikli.com/renewable-energy-law-update-amendments-to-the-local-content-support-regulation/#_ftn2) shall be applied for the main source and remaining time period such main source can benefit from the local content support which shall be determined by EMRA.

6. Domestic Goods Certificate Requirement

Amended Article 7 of the Regulation requires domestic goods certificate submission for certain components of “Tower Connection Equipment” in Wind Power Plants and “Electrical Connection Equipment” in Photovoltaic Solar Power Plants which are regulated under Appendix-1 of the Amending Regulation.

7. TSI Final Certificate of Conformity

Having completed the certificates required by the relevant standards (Type Certificate and/or Unit Confirmation Certificate etc.), the applicants whose documentation process is initiated but not completed shall submit the petition in the Appendices of the Amending Regulation to the Turkish Standards Institution (“TSI”) no later than 18 months as of the application date in order to obtain the TSI Final Certificate of Conformity which shall be submitted to the Ministry and/or the institution authorised by the Ministry afterwards. Otherwise, such applicant cannot benefit from the local content support and the licensee shall inform EMRA for proceedings subject to YEKDEM Regulation and reimbursement of the relevant sums with interest.

4. Applicants for 2021 shall submit the documents until October 16

According to the Provisional Article 3 inserted to the Regulation for ongoing applications; the applicants shall submit their documents to the Ministry and/or the institution authorised by the Ministry until October 16, 2020 in order to be eligible for benefiting from local content in 2021.

Applicants shall reorganize the missing or incorrect documents and make their submission to the Ministry and/or the institution authorised by the Ministry until October 28, 2020 and EMRA shall be informed in relation with the local content support which shall be determined subject to the evaluation of the Ministry and/or the institution authorised by the Ministry as of October 31, 2020.

5. Plants Operating for the first time in between November 1st, 2020 and December 31st , 2020 According to the paragraph 2 of the Provisional Article 3 inserted to the Regulation for ongoing applications; the required documents for local content support application in relation with the electricity generation facilities which will be operating for the first time between November 1st and December 31st, 2020 shall be submitted to the Ministry and/or the institution authorised by the Ministry until December 31, 2020. The applicants shall reorganize the missing or incorrect documents and make their submission to the Ministry and/or the institution authorised by the Ministry until September 30th , 2021. Following the application, EMRA and the applicant shall be informed in relation to the local content support which shall be determined subject to the evaluation to be made by the Ministry and/or the institution authorised by the Ministry as of October 31th, 2021. In the event of operation of units within the referred facilities subject to provisional acceptance, the applicants shall submit the required documents to the Ministry and/or the institution authorised by the Ministry as of August 1st within the relevant year.

(1) (https://www.kesikli.com/renewable-energy-law-update-amendments-to-the-local-content-support-regulation/#_ftnref1) United Renewable Electricity Generation Facilities are defined as facilities generating electricity from more than one energy source connected to the network from the same connecting point as per the Article 3(1)(t) of the Regulation.

(2) (https://www.kesikli.com/renewable-energy-law-update-amendments-to-the-local-content-support-regulation/#_ftnref2) Supporting Source Electricity Generation Facilities are defined as electricity generation facilities in which another energy source is used in the course of thermal conversion as per the Article 3(1)(u) of the Regulation.

@Kesikli Law Firm