Recent Developments
The Regulation Amending the Regulation on License-Exempt Electricity Generation in the Electricity Market (“Amendment Regulation”), which introduces significant developments regarding license-exempt electricity generation, entered into force after being published in the Official Gazette dated 25 November 2025 and numbered 33088. You can access the Amendment Regulation here (in Turkish).
What does the Amendment Regulation introduce?
The Amendment Regulation has made significant amendments to the Regulation on License-Exempt Electricity Generation in the Electricity Market (“Regulation”). These can be summarized as follows:
1. Uniformization of the YEKDEM definition
Under the Amendment Regulation, the definition of the Renewable Energy Resources Support Scheme (Yenilenebilir Enerji Kaynakları Destekleme Mekanizması (YEKDEM)) under the Regulation has been expanded to include aggregators, and the legislation has been made uniform.
2. Technical evaluation report for geothermal and biomass
Geothermal and biomass resources are now included in the technical evaluation process previously applied by the General Directorate of Energy Affairs of the Ministry of Energy and Natural Resources for applications based on wind and solar energy.
3. Amendments under 5/1/(h) and the prohibition on reapplication
Pursuant to the Amendment Regulation, except in cases of inheritance and bankruptcy, where a generation facility or facilities falling under Article 5/1/(h) (“5/1/(h)”) of the Regulation are subject to transfer, no reapplication can be made under the Regulation for the consumption facilities associated with that generation facility or facilities, and any application for an invitation letter for a connection agreement by associating these consumption facilities will be returned without evaluation. However, these principles will not apply (i) where the generation facility and its associated consumption facility are transferred together to the same person, and (ii) in transfers between public institutions, organizations and their affiliated entities.
In addition, a matter that was previously implicitly understood under Article 30/7 of the Regulation has been expressly regulated and clarified. Accordingly, all generation facilities falling under 5/1/(h) that will be connected to the grid pursuant to the provisions of the Regulation must complete the environmental impact assessment and acceptance procedures, and obtain zoning and other permits and approvals required to commence investment, within three years from the date the connection agreement is executed.
4. Acceptance requirement in mergers and demergers
The acceptance requirement regime applicable to mergers and demergers has been revised under the Amendment Regulation. Prior to the Amendment Regulation, when a legal entity owning a license-exempt generation facility merged with another entity (with all its assets and liabilities) or underwent a full or partial demerger, it was required that acceptance had been completed for all license-exempt electricity generation facilities. However, in the case of a share transfer, this requirement was only envisaged for wind- or solar-based facilities falling within the scope of Article 5/1/(c) of the Regulation (“5/1/(c)”). Under the Amendment Regulation, the scope of the acceptance requirement for mergers and demergers has been narrowed to apply solely to generation facilities under 5/1/(c); the existing practice for share transfers has been preserved. Furthermore, as a principle that remains unchanged, where the legal entity owning the license-exempt generation facility remains the same and shareholding ratios do not change, the acceptance requirement will not be required for mergers and demergers.
5. Amendments regarding TEİAŞ capacities
Under the Amendment Regulation, applications for license-exempt electricity generation other than those based on wind and solar energy will no longer be subject to the capacities announced by the Turkish Electricity Transmission Corporation (Türkiye Elektrik İletim A.Ş. (TEİAŞ)). In addition, if the technical evaluation conducted for the purpose of issuing a connection opinion for these applications is found to be appropriate, a positive connection opinion will be issued. Nevertheless, in the technical evaluation of applications other than wind- and solar-based applications made in the same month, if there are multiple applications and the power specified in the Regulation at the relevant transformer center is insufficient for the capacities of these applications, the priority assessment applied in relation to the connection of wind- and solar-based generation facilities will also be taken as the basis for these applications. However, if TEİAŞ has announced capacity for applications based on wind and solar energy, and applications based on wind and solar energy and those based on other energy sources are submitted in the same month, priority will first be given to processing applications based on wind and solar energy within the capacity announced by TEİAŞ.
6. Priority assessment criteria
The Amendment Regulation has introduced significant changes to the criteria applied, in sequence, for priority assessments regarding the connection of wind or solar-based generation facilities to the grid by the relevant network operator:
- Prior to the Amendment Regulation, the criterion stated as “the generation facility subject to the application being based on renewable energy sources” has been revised. Under the Amendment Regulation, the new wording of this criterion is as follows: “the generation facility subject to the application being located at the same metering point as the consumption facility planned to be associated with it.”
- The criterion previously stated as “the generation facility subject to the application being a cogeneration facility” in the period prior to the Amendment Regulation has been completely removed.
- The criterion previously applied in the period prior to the Amendment Regulation as “the applicant’s consumption amount over the past year being higher than that of other applicants” has been revised. It now differentiates between cases where an invitation letter has previously been issued for the relevant consumption facility and cases where one has not, and its order has been changed. Pursuant to the Amendment Regulation, the new version of this criterion is as follows: “the applicant’s consumption amount within the last one year, if an invitation letter has not previously been issued for the same consumption facility, or, if an invitation letter has previously been issued, excluding those that have been cancelled, the consumption amount taken as the basis for the priority assessment determined pursuant to Article 14/9 of the Regulation (and in accordance with the formula specified in the regulation), being higher than the other applications.” If new applications are submitted for a consumption facility or facilities for which an invitation letter for a connection agreement has previously been issued, the consumption amounts of those facilities, in proportion corresponding to the installed capacity of the generation facility previously allocated for such consumption facilities, will not be taken into account in the new applications.
- One criterion applied in the period prior to the Amendment Regulation has not been changed. It is as follows: “the applicant’s contract power under the connection agreement being higher than that of other applicants.”
- Another criterion applied in the period prior to the Amendment Regulation has not been changed. It is as follows: “the applicant not having a previously submitted application for which a positive connection opinion has been issued.”
7. Applications for integrated parcels and an increase in installed capacity
Under the Amendment Regulation, applications submitted for integrated parcels to be associated with the same consumption facility or facilities will now be considered within the scope of an installed capacity increase. For facilities planned to be installed under an invitation letter for a connection agreement and a connection agreement issued pursuant to the Regulation as of 12 May 2019, and whose acceptance has not yet been completed, applications made for integrated parcels to be associated with the same consumption facilities will, upon request by the relevant natural or legal persons, also be treated as falling within the scope of an installed capacity increase. Furthermore, the Amendment Regulation introduces specific time frames for completing various procedures related to installed capacity increases.
8. New power and consumption requirements in the case of a change of consumption facility
Under the Amendment Regulation, where it is intended to change the subscription relating to the consumption facility or facilities associated with the generation facility, the following applies:
a. The contract power in the connection agreement for the new consumption facilities to be associated with the generation facility will not be less than the installed capacity of the generation facility to be associated. Previously, it was stipulated that it could not be less than the contract power in the connection agreement forming the basis of the application.
b. Under the priority assessment criteria, if persons that hold an invitation letter for a connection agreement and have signed a connection agreement wish to change the subscription relating to the consumption facilities associated with the generation facility, the annual total electricity consumption of the new consumption facility or facilities to be associated with the generation facility will not be less than the consumption amount forming the basis of the application. Without prejudice to the provisions set forth in this paragraph (b), regarding generation facilities that have been accepted and commissioned, if the contract power under the connection agreement for the consumption facilities associated with the generation facility becomes lower than the generation facility’s installed capacity, the energy generated during the relevant period will be deemed to have been produced and delivered to the system by the authorized supply company. In addition, no payment will be made by the market operator or the authorized supply company in relation to this energy, and the energy delivered to the system within this scope will be considered a gratuitous contribution to YEKDEM.
Conclusion
Technological advancements and the new business models emerging in parallel inevitably increase energy demand. This increase continuously drives both licensed and license-exempt generation activities and other electricity market solutions and practices to evolve, requiring the regulatory framework to adapt to this change. In this regard, the Amendment Regulation has introduced notable developments in both the technical and legal aspects of the application, connection and acceptance processes for license-exempt electricity generation. The regulations introduced in critical areas such as application priority, capacity allocation, facility transfer and capacity increase aim to reduce problems encountered in practice and enhance predictability in grid management.
