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NEWSLETTER 2011

190

Regulation on the Unlicensed Electricity Generation

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Att. Özgür Kocabaşoğlu

Regulation on the Unlicensed Electricity Generation on the Electricity

Market (“Regulation”) has entered into force through publication in the

Official Gazette dated July 21, 2011 and numbered 28001. The Regulation

provides that real and legal persons fulfilling certain minimum legal

requirements are exempt from the requirement of obtaining a license and

establishing a company in order to generate electricity. With the Regulation,

it is possible to establish a generating station or power plant, the installed

power capacity of which is limited to a maximum of five hundred kilowatts

based on renewable energy

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sources, and/or cogeneration facilities

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.

Exemption Concerning the License and Establishment of a

Company

Exemption concerning the license and establishment of a company

is laid down under Article 4 of the Regulation. Pursuant to the relevant

article, persons who can benefit from the exemption concerning the

license and establishment of a company are as follows:

- Real and legal persons who will generate electricity in micro

cogeneration

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facilities, or generation stations with a maximum

installed power of five hundred kilowatts based on renewable

energy sources,

- Real and legal persons who will establish a cogeneration facility

that exceeds the limit laid down under the Regulation on Increase

of Productivity on the Utilization of Energy Sources and Energy,

in order to meet their own needs.

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Article of July 2011

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Renewable energy sources are the energy sources such as hydraulic, wind, solar, geothermal,

biomass, gas obtained from biomass (including landfill gas), and non-fossil energy sources

such as wave, stream energy and rise and fall.

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Cogeneration facilities are the facilities that generate heat and electricity and/or mechanical

energy simultaneously.

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Micro cogeneration facilities are the facilities with a total installed power of fifty kilowatts

and less based on electric energy.