The Energy Regulation and Markets Review - Stikeman Elliott

Turkey
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the requested connection has a preventive impact on TEİAŞ or a distribution
company’s public service obligations (this must be evidenced by TEİAŞ or the
distribution company);
the facility will cause a decrease in the electricity quality of the system; or
with respect to wind and solar facilities, there is an alternative connection point
that is more economical and efficient.
Furthermore, once connected to the system, if there is a need for a system usage capacity
increase or a new investment and there is insufficient financing for such an investment,
then third parties requiring the connection may make the necessary investment in
accordance with any required standards on behalf of TEİAŞ or the distribution company.
In such circumstances, the total investment amount may be set off from the system usage
fees or distribution tariffs under the connection agreement that will be executed between
the parties.
Last, it should be noted that TEİAŞ or the distribution company must give
priority to those facilities with renewable energy sources and facilities with indigenous
natural resources.
ii Tariffs
EMRA creates the principles and procedures for setting certain tariffs, and it reviews and
approves the methodologies and tariffs submitted by certain other authorities. Article
13 of the EML and the Electricity Market Tariff Regulation set out the criteria for the
preparation of tariff proposals by TEİAS, TETAŞ and other entities. Generally, tariffs
must be cost-effective and are created ex ante according to a pre-defined methodology.
Once they have been approved they are published in the Official Gazette and on EMRA’s
website to ensure transparency. Broadly speaking, there are eight categories of tariffs:
connection, transmission, distribution, average wholesale price, wholesale price for
TETAŞ, retail supply, retail supply services and ancillary services.
Also, as described below, Turkey has passed laws with respect to renewable energy,
which provide incentives and benefits for renewable energy projects, including feed-in
tariffs. These tariffs are applicable to entities holding generation licences that started
operation between 31 December 2005 and 18 May 2008, and lasts for 10 years from the
date of operation.
iii Supply security
The MENR is responsible for monitoring the security of the electricity supply and for
taking measures to protect it. In 2008, the EML was amended to ensure the security
of the electricity supply and to provide new measures to prevent a supply deficit. For
example, it increased the powers of MENR so that it is authorised to take any measure
to secure the supply of electricity. Also, it is tasked with preparing a report on electricity
security for each fiscal year. Moreover, it may announce a tender if energy investments
are insufficient to meet demand.
In addition to increasing the authority of the MENR, the 2008 EML amendment
also made TEİAŞ responsible for ensuring the reliability of the grid. While doing so,
TEİAŞ must meet third-party demands for connection to the network and system use on
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