Renewable energy investments with storage can obtain a license without competition

A bill has been submitted to provide pre-license for wind and/or solar power generation facilities without competition to companies committed to establishing electricity storage facilities. According to the bill submitted to the Turkish Grand National Assembly, these power plants will also be able to benefit from the Renewable Energy Support Mechanism (YEK). Similar incentives have been proposed for existing plants as well.

According to the bill, partially or fully operational electricity generation facilities may be granted capacity expansion permits up to the capacity of the storage facility they will establish if they add storage investments. However, the first sentence of the second paragraph of Article 6/C of Law No. 5346 on the Use of Renewable Energy Sources for Electricity Production will not apply to this capacity increase, and the plants may also benefit from the YEK Support Mechanism for capacity expansion.

The procedures and principles of the implementation will be regulated by a regulation to be published by the Energy Market Regulatory Authority. The relevant article in the bill is as follows:

“ARTICLE 49 – The following paragraphs have been added to Article 7 of the Electricity Market Law No. 6446 dated 14/3/2013.

(9) The principles and procedures for technical evaluation of pre-license applications based on biomass and geothermal energy will be regulated by the Ministry with a regulation.

(10) Companies committed to establishing an electricity storage facility are granted a pre-license by the Authority for the establishment of a wind and/or solar power generation facility up to the installed capacity of the electricity storage facility they committed to establish. The provisions of the fourth paragraph of Article 7 of this Law shall not apply to production facilities within this scope. The procedures and principles of the implementation, including pre-licensing and licensing conditions, their amendment and cancellation, the seizure of the guarantee in case of failure to fulfill the obligations, and the provision of electricity generated within this scope to the system through the storage facility, will be regulated by the Authority with a regulation. Facilities to be established within the scope of this paragraph may benefit from the provisions of Article 6 of Law No. 5346.

(11) Companies holding a wind and/or solar power generation license who commit to establishing an electricity storage facility may be granted permission for capacity increase up to the installed capacity of the electricity storage facility they commit to establish. This will be subject to not exceeding the areas specified in their licenses, not exceeding the installed capacity specified in their licenses for power supplied to the system during operation, and obtaining a positive connection view from TEIAS and/or the relevant distribution company. The provisions of the first sentence of the second paragraph of Article 6/C of Law No. 5346 shall not apply to capacity increases within this framework. The procedures and principles of the implementation, including the provision of electricity generated within this scope to the system through the storage facility, will be regulated by the Authority with a regulation.

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