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ARTICLE · 04 APRIL 2016

Turkey Considers Removing Domestic Manufacturing Incentive For Unlicensed Electricity Generation Projects

Moroglu Arseven
Moroglu Arseven
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Turkey's Energy Market Regulatory Authority has announced a proposal to remove a financial incentive for unlicensed electricity generation projects which use domestic products.

TurkeyEnergy and Natural Resources
Dr. E. Seyfi Moroğlu, LL.M.
Dr. E. Seyfi Moroğlu, LL.M.
E. Benan Arseven
E. Benan Arseven
C. Hazal Baydar, LL.M.
C. Hazal Baydar, LL.M.
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Energy Market Regulatory Authority ("Authority") has announced a proposal to remove a financial incentive for unlicensed electricity generation projects which use domestic products. The proposal is intended to keep pace with recent developments in Turkey's electricity market. The incentive would continue to be available for other renewable projects. The public submission period for the proposed changes closed on 21 March 2016 and the Authority is now considering comments received.

Currently, unlicensed projects can benefit from certain feed-in-tariffs (within the scope of Tariff No. I of Renewable Energy Law) when selling surplus energy to authorized distribution companies through the YEKDEM mechanism (Renewable Energy Resource Support Mechanism). Under Tariff II, if mechanical or electro-mechanical devices are used renewable projects are manufactured in Turkey, a domestic product fee is added to the feed-in-tariff prices, as an additional incentive. The

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