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ENERGY LAW
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legal entity and chairmen and members of the board of directors, including
ones that resigned within the one year before the license cancellation,
shall not be prohibited pursuant to paragraph 8 Article 5 of the Law.
Article 12 of the Regulation stipulates that legal entities demanding to
be engaged in producing activities shall apply to the Board by providing
“the letter of application” and all other required documents in order to
obtain a preliminary license. With this provision it is foreseen that a letter
of bank guarantee shall be submitted to the Authority in the amount set
by the Board for each MW of installed capacity. The upper limit of the
guarantee letter calculated by this method is set by the Board and cannot
exceed five percent of total investment costs projected by the Authority
for the generation facility.
During the preliminary license application, the articles of association
of the applicant legal entity must be submitted; they should indicate
that the company’s minimum capital has been raised to five percent of
the total investment cost projected by the Authority for the generation
facility, and to one percent for the construction of a nuclear energy based
generation facility. Furthermore, there is a provision in the Regulation,
which is likely to be perceived as an encouragement, which stipulates
that only ten percent of the preliminary license application fee shall be
collected from legal entities applying for preliminary licenses to set up
generation facilities based on domestic natural resources or renewable
energy sources.
Article 13 of the Regulation concerns the acceptance and review
of preliminary license applications. Pursuant to this article, preliminary
license applications will be reviewed within ten days, and where there
is an inadequacy, it shall be required to be rectified within fifteen days.
Applications deemed complete are taken under review for evaluation.
Information regarding a preliminary license application under evaluation
is announced on the Authority’s webpage. Third parties can file a written
objection to the announced application within ten business days solely on
the grounds of violation of personal rights.
As per Article 15 of the Regulation, an opinion shall be requested
from the TEIAS (Turkish Electricity Transmission Company) and/or the
distribution license holder legal entity regarding the preliminary license