Significant Amendments in the Electricity Market Legislation

The Energy Market Regulatory Authority (“EMRA”) has introduced substantial amendments to the electricity market legislation. Among these changes, notable highlights include the provision of a new opportunity for license-exempted electricity generation facilities whose ten-year purchase guarantee period has expired, and the limitation of energy supplied to the system by electricity generation facilities with integrated electricity storage units to the total installed capacity of units with provisional acceptance.

On 17 December 2024, with Official Gazette No. 32755, significant innovations and amendments were made in the electricity market legislation. Notably, amendments were made to the following key regulations:

–       Regulation on License-exempted Electricity Generation in the Electricity Market (“License-exempted Generation Regulation”)

–       Electricity Market Licensing Regulation (“Licensing Regulation”)

–       Electricity Market Regulation on Storage Activities (“Storage Regulation”)

–       Electricity Market Balancing and Settlement Regulation

–       Electricity Market Ancillary Services Regulation

–       Electricity Market Renewable Energy Resource Guarantee Certificate Regulation

–       Electricity Grid Regulation

–       Regulation on the Certification and Support of Renewable Energy Resources

Also, Electricity Market Aggregation Activity Regulation was issued for aggregation activities. Our article on the related Regulation can be accessed through this link.

Below are the key highlights of these amendments:

Amendments in the License-exempted Generation Regulation

• In cases where unauthorized electricity consumption is detected in consumption facilities associated with a generation facility, previously only the energy produced during the relevant period was considered as a gratuitous contribution to YEKDEM (Renewable Energy Support Mechanism). With the amendment, energy produced during the six subsequent billing periods will also be included, calculated based on the ratio of the contract capacity of the detected consumption facility to the total contract capacity of all related consumption facilities.
• A provision has been introduced allowing wind energy-based generation facilities belonging to the same individual to be combined under one connection agreement call letter, provided the transformer center remains unchanged.
• License-exempted electricity generation facilities whose ten-year purchase guarantees have expired can now be included in the portfolio of legal entities holding an aggregation license once their 10-year purchase guarantees have expired.

Amendments in the Licensing Regulation

• Generation facilities requiring a pre-license must now ensure that the Technical Interaction Permit aligns with the unit capacity and coordinates specified in the license application.
• The requirement to submit proof of application for a Technical Interaction Permit to EMRA for mechanical capacity revisions in wind energy facilities has been removed.
• The obligation to finalize unit coordinate revisions in pre-licenses for wind energy facilities based on approval from the General Directorate of Energy Affairs has been abolished.
• For renewable energy resource areas (YEKA), amendments to unit coordinates, unit numbers, and unit capacities are no longer finalized by EMRA decisions.
• The requirement for a minimum capital amount for companies applying for supply and aggregator licenses has been removed, leaving this regulation under EMRA’s discretion.
• Distribution companies have been permitted to procure services related to accounting, finance, legal, human resources, and similar operations. However, such services cannot be obtained from other distribution companies with the same ownership structure, the parent company, or companies controlled by the parent company. Additionally, distribution companies are now required to use a separate physical environment and IT infrastructure from supply companies.
• Under Article 17 of the Licensing Regulation, failure to apply to the relevant institution within 90 days of notification for pre-license approval, or within 45 days for license amendment applications under Article 24, will result in a license amendment fee tripled.
• Transactions related to inheritance and capital changes are exempt from regulatory provisions, removing the requirement for EMRA approval.
• Temporary Article 4, concerning service procurement under legal unbundling, has been repealed.

Amendments in the Storage Regulation

For electricity generation facilities with integrated storage units, the energy supplied to the system is now limited to the total installed capacity of units with provisional acceptance, replacing the previous limitation based on the installed capacity specified in the license.

EMRA Decisions

• Under the EMRA Decision No. 13064, dated 12 December 2024, licensed entities can sell up to 50% of their annual electricity production in the market during 2025.
• EMRA Decision No. 13065, dated 12 December 2024, reduced the free consumer limit in the electricity market from 950 kWh in 2024 to 750 kWh for 2025.

You can access the Official Gazette dated 17 December 2024, containing these amendments, via this link. (Only in Turkish)