Implementation Regulation Regarding Locally Manufactured Components Used In Renewable Energy Facilities

The Law No. 5346 on the Utilization of Renewable Energy Resources for the Purpose of Generating Electrical Energy was amended on 8 January 2011. The amended Law No. 5346 envisages bonus tariffs for the license holder legal entities that use locally produced mechanical and/or electro-mechanical components in renewable energy facilities. Such bonus tariffs differ according to the type of the renewable energy and the component manufactured from USD 0.004 to 0.024 per kWh for a five-year term from the operation date of plants provided that they start producing energy before the end of 2015 and they are registered in the Renewable Energy Support Mechanism defined in the Law No. 5346 (Please see our article on "Turkey: Incentives for Renewable Energy" published on 28 April 2011 on Mondaq). As an implementing regulation, the regulation on the Local Manufacture of the Components Used in the Generation of Electricity from Renewable Energy Resources (the "Regulation")