Turkey has extended the periods set forth for the connection agreements in unlicensed electricity investments, renewable energy source areas, and the Renewable Energy Resources Support Mechanism ("YEKDEM") with the Law Number 7186 Amending Income Tax Law and Certain Other Laws (the "Omnibus Bill").
According to the Omnibus Bill,
- The period for connection agreements of the power plants with the installed power below 1 megawatt has been extended for 120 days.
- The periods concerning the rights and obligations under the agreements below have been extended for 36 months as of 19 July 2019:
- Agreements concerning renewable energy sources areas which are contracted as of 19 July 2019 according to the procedure specified under the Electricity Market Law ("Law"),
- Transfer agreements and electricity sales agreements concluded prior to 19 July 2019, with the purpose of building an electric power plant based on renewable energy sources or local coal and which are privatized, in line with the procedure specified under the Law.
Within this period, not only the related agreements but also shares of the project company can be transferred. The agreements to be transferred in this respect will be exempted from stamp tax.
- Periods under the YEKDEM for the power plants generating energy based on the resources defined as biomass will not commence as of becoming operational but as of entering into YEKDEM.
Please see this link for full text of the Omnibus Bill, published in the duplicated Official Gazette number 30836 on 19 July 2019 (Only available in Turkish).
Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
