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NEWSLETTER 2013
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Article 14 of the New EML sets forth the activities that can be
conducted without a license. Whereas under the Previous Law 500
kW was the maximum installed capacity for a renewable energy plant
to operate without a license, the New EML has raised that maximum
to 1 mW. In addition, the Council of Ministers is authorized to increase
the maximum installed capacity for a renewable energy plant to operate
without a license to 5 mW.
The draft of the New EML previously announced by EMRA initially
stipulated that transactions such as share transfer and change of control,
which result in a change in ownership or usufruct rights, could be
conducted without requiring the approval of, but by simply notifying
EMRA. However, this change is not included in the New EML, and similar
to the Previous Law, those transactions are still subject to EMRA’s prior
approval under the New Law.
EPIAS and the Activity of “Market Operation
”
The New EML defines a new activity called “market operation” as
the operation of organized wholesale electricity markets and financial
settlement of activities conducted in such markets, along with other
related financial transactions.
Currently electricity market operation activities are conducted by the
Market Financial Reconciliation Center (“MFRC”), organized under the
Turkish Electricity Transmission Joint Stock Company (“TEIAS”). The
New EML establishes a new company to assume the role of the MFRC,
the Energy Market Operation Joint Stock Company (“EPIAS”). The
permanent officials and equipment of the MFRC will be transferred to
EPIAS, which will be a private legal entity acting under an EMRA issued
market operation license. Pursuant to the New EML, EPIAS is to be
incorporated and initiate its activities, and the relevant regulations will be
enacted within six months from the date the New EML enters into force.
Preliminary License for Generation
As per Article 6 of the New EML, a preliminary license is required for
commencement of generation activities. EMRA will issue a preliminary
license for a specified term to the legal entities who apply to conduct