Turkey Imposes 1 MW Connection Point Limit For Unlicensed Electricity Generation, Plus Restricts Share Transfers

Significant structural changes have been made to Turkey's unlicensed electricity generation market. The most important change is a new 1 MW total installed capacity limit for unlicensed facilities held directly or indirectly by the same persons or entities. Accordingly, affiliated or group companies will no longer be allocated more than 1 MW of capacity for the same sub-station connection point. Share transfers are now restricted for applicants until provisional acceptance of an unlicensed facility is complete. A minimum self-consumption ratio is also introduced, placing a cap on the excess energy which can be sold to distribution companies. Other new requirements are also introduced for connections, mergers/demergers, as well as application procedures. Certain aspects of the new requirements will not apply to unlicensed applicants which obtained a connection invitation letter before 23 March 2016.