Uncertainty Regarding Unlicensed Renewable Energy Facilities Has Been Resolved

The Amendment Law on the renewable energy market was published in the Official Gazette in Türkiye on 25 Nov 2020.

With the new legislations, uncertainty regarding unlicensed renewable energy facilities beyond 10 years has been resolved. Unlicensed renewable energy facilities will be able to start licensed production under the condition that 15 percent of the hourly market clearing price formed in the electricity market during the license period is paid as a contribution fee to the RES Support Mechanism.

Another important change is the application of the current USD prices in terms of TRY krş / kWh for the facilities within the scope of the current unlicensed generation activity since the end of the 10-year period.  Prices in TRY will also be applied for renewable energy facilities that will be activated after July 2021.

Renewable power plants commissioned after July 2021 will be able to benefit from TRY-denominated domestic component contribution prices for 5 years. Until now, only licensed renewable energy facilities could benefit from TRY-denominated domestic component contribution prices.

According to new regulations, there will be an 85 percent discount on the cost of using state land such as rent and permit fee for power plants that will be activated by the end of 2025.​​​​​

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