Recent developments
With Presidential Decision No. 11415 (the “Presidential Decision“), which came into force upon its publication in the Official Gazette dated 13 June 2026 and numbered 33279, the price to be applied to the surplus electrical energy generated by electricity generation facilities that continue their license-exempt generation activities after the expiry of the 10-year period during which they benefited from the Renewable Energy Resources Support Scheme (“YEKDEM“), as well as the procedures and principles governing its application, have been determined. You may access the text of the Presidential Decision here (in Turkish).
What does the Presidential Decision introduce?
1. Background
a. Annulment by the Constitutional Court of the provision allowing the transition from license- exempt generation to licensed generation
Pursuant to Law No. 5346 on the Utilization of Renewable Energy Resources for the Purpose of Generating Electrical Energy (the “Renewable Energy Law“), facilities operating within the scope of license-exempt generation activities that had completed the 10-year YEKDEM support period were offered two options: (i) transition to licensed generation activities, or (ii) continue their license-exempt generation activities. The transition to licensed generation was subject to the conditions that (i) it be requested by the facility owner upon completion of the 10-year period, (ii) the license acquisition fee be paid, and (iii) where the hourly market clearing price (“PTF“) in the electricity market during the license term exceeded the applicable YEKDEM price determined on a facility-type basis under the Renewable Energy Law, the price difference be paid to YEKDEM as a contribution fee; however, the authority to determine the license acquisition fee, the license term, and other matters relating to the transition to licensed generation activities was vested in the Energy Market Regulatory Authority (“EMRA“).
By its decision dated 26 November 2025 (Case No. 2024/133, Decision No. 2025/233), the Constitutional Court (i) annulled, effective 10 December 2026, the phrase “license acquisition fee” in the provision governing the conditions for transition to licensed generation, on the grounds that neither the amount of the license acquisition fee nor its fundamental principles and procedures had been determined by law and were therefore unconstitutional; and (ii) further assessed that the annulment of the portion of the provision relating to the “license acquisition fee” eliminated the possibility of implementing the mechanism for transition from license-exempt generation to licensed generation. However, the provision stipulating that the price to be applied — not to exceed the PTF — to surplus electrical energy generated by facilities continuing license-exempt generation, as well as the procedures and principles applicable thereto, would be determined by the President, was not found unconstitutional and remained in force.
b. Temporary application of the “License-Exempt Generator-2” tariff
By its decision dated 21 May 2026 and numbered 14613 (the “Interim Tariff Decision“), EMRA ruled that for license-exempt generation facilities that had completed their 10-year period, the “License-Exempt Generator-2” tariff would apply until the date of publication of the Presidential Decision, and reduced the injection-direction distribution fee from 208.1065 kurus/kWh to 65.6008 kurus/kWh.
2. Determination of the purchase price applicable to surplus electrical energy, and the procedures and principles governing such application, by Presidential Decision
Following the determination of the pricing and implementation principles applicable to surplus electrical energy by the Presidential Decision, the Interim Tariff Decision has been superseded by a permanent framework and has ceased to be applicable. Pursuant to the Presidential Decision, the key developments introduced with respect to electricity generation facilities that continue their license-exempt generation activities after the expiry of the 10-year period during which they benefited from YEKDEM are as follows:
a. If the consumption facility and the generation facility are located at the same metering point: All electrical energy generated at license-exempt electricity generation facilities located at the same metering point as the consumption facility may be sold.
b. If the consumption facility and the generation facility are located at different metering points: Only surplus electrical energy may be sold at facilities located at a different metering point from the consumption facility. The amount of surplus electrical energy eligible for sale will be determined by EMRA, and any electrical energy injected into the system in excess of such surplus amount will be treated as a free-of-charge contribution to YEKDEM.
c. Purchase price: Where electrical energy generated at license-exempt electricity generation facilities in excess of consumption is injected into the transmission or distribution system, the purchase price to be applied to the electrical energy injected into the system following hourly netting will be determined by rounding to two decimal places 90% of the applicable YEKDEM price determined on a facility-type basis for licensed generation facilities under the Renewable Energy Law, provided that such value may not exceed the hourly PTF.
d. Mandatory purchaser: Electrical energy eligible for sale must be purchased by the relevant authorized supply company (“ASC“). Electrical energy so purchased will be deemed to have been generated and injected into the system by the ASC within the scope of YEKDEM.
Conclusion
The purchase price mechanism established by the Presidential Decision, when considered together with the hourly netting regime that entered into force for license-exempt electricity generation facilities as of May 2026, renders facility revenues dependent on the hourly production-consumption balance and PTF movements, thereby giving rise to a new duty of care with respect to generation forecasting and portfolio management. Taking into account that, pursuant to the Constitutional Court’s decision, the mechanism for transition from license-exempt generation to licensed generation will cease to exist as of 10 December 2026 unless addressed through new legislation by that date, it is important for market participants to assess these developments as a whole in light of their concrete implications for existing portfolios and commercial strategies.
