Investments in electricity storage have been included in domestic contribution scope under Article 6/B of Law No. 5346.
A regulation has been added to provide local contribution support to equipment used in electricity storage investments, which was published in the Official Gazette today.
This change was made by adding the phrase “and Article 6/B” to the 10th paragraph of the Electricity Market Law’s 7th article entitled “Production Activity”.
With this phrase, electricity storage investments have come under the scope of Article 6/B of Law No. 5346, which determines the framework for support for the use of domestic equipment in renewable energy sources for electricity production.
The relevant amendment is as follows;
“Production activity
ARTICLE 7
Legal entities that undertake to establish an electricity storage facility are granted a preliminary license by the Authority for the installation of wind and/or solar power plants up to the installed capacity of the electricity storage facility they undertake to establish. The provisions of the fourth paragraph of Article 7 of this Law shall not apply to production facilities within this scope. For facilities to be established under this paragraph, the conditions for granting preliminary licenses and licenses, as well as amendments and cancellations thereof, the retention of guarantees in case of failure to fulfill obligations, and the procedures and principles for the transmission of electricity produced by these facilities to the system through the storage facility, shall be regulated by the Authority by regulation. Facilities to be established within the scope of this paragraph may benefit from the provisions of Article 6 and Article 6/B of Law No. 5346.”
The relevant article of Law No. 5346 on Renewable Energy Sources for Electricity Production is as follows;
“Use of domestic products
ARTICLE 6/B
Use of domestic products ARTICLE 6/B – (Supplemented by Law No. 6094 of 29/12/2010, Art. 4) (Amended by Law No. 7257 of 25/11/2020, Art. 15.) In case the mechanical and/or electromechanical components used in production facilities that entered into operation before 30/6/2021 based on renewable energy sources within the scope of this Law are manufactured domestically by legal entities holding licenses, additional prices specified in Table I are added to the prices indicated for the electricity energy transmitted or distributed from these facilities for a period of five years from the date on which the production facility was put into operation. Domestic contribution prices to be applied in Turkish lira for licensed production facilities to be established using domestic components that will enter into operation after 30/6/2021, YEK-certified production facilities that will meet the needs of consumption facilities, and unlicensed production facilities to be established will be determined and announced by the President, including the update of these prices, the duration of their application, and the other procedures and principles to be applied. The definition, standards, certification, and inspection of domestic components shall be regulated by the Ministry by regulation.”
