Amendments on Regulation on Unlicensed Power Generation

Energy Market Regulatory Authority (EPDK) is planning to make dramatic amendments on the Regulation on Unlicensed Power Generation.

Energy Market Regulatory Authority (EPDK) is planning to make dramatic amendments on the Regulation on Unlicensed Power Generation.

As regards to the announcement of EPDK: i) a person will not make license application for more than 1 MW, ii) share transfer on unlicensed power generation companies will not be allowed until the temporary admission, iii) electricity distribution companies, their direct or indirect shareholders and the persons who work for such companies will not participate to unlicensed power generation activities.

Under such amendments, that are available on the draft (‘’Draft’’) published on EPDK’s website:

1) A person will not make license application for more than 1 MW per kVA TM. The Draft contains the terms set out below:

“With respect to the renewable generating plants, allocation for maximum 1 MW will be provided for only one individual or legal entity or legal entities whose shareholders are such individual(s) or legal entity(ies) per each transformer station.”

2) Other significant matter is restriction of share transfers pursuant to the Draft. Share transfer will not be allowed until the temporary admission. In this respect, it is aimed to stop closing sales by using share transfer method following invitation letter.

In addition, electricity distributor must be informed regarding the share transfer 30 (thirty) days in advance of the subject transfer.

3) Another matter, which is planning to be placed in the Draft, is to disallow electricity distribution companies and their direct or indirect shareholders’ participation to the activities related to unlicensed power generation. The logic behind this amendment is to prevent monopolization of the industry by industry leading companies’ establishing a number of small-size companies.

Besides, the Draft intends to prevent the unfair advantage of authorized electricity distribution companies.

Yazar : Gulel Hukuk