The Energy Regulation and Markets Review - Stikeman Elliott

Turkey
wind park energy (known as the Rüzgar Enerjisine Dayali Üretim Tesisi Kurmak Üzere
Yapilan Lisans Başvurularina İlişkin Yarişma Yönetmeliği). 11 Prior to the passage of this
law, wind licences had been on hold indefinitely, which had resulted in investment delays
in this area; however, since the passage of this law, licences for numerous wind farms have
been issued. As this area continues to show improvement, some domestic companies
have been engaged in sourcing wind turbine components for their turbines in Turkey,
which will also help stimulate the country’s domestic market.
With respect to biomass projects and waste-to-energy projects, as of 2010, there
were 15 waste-to-energy facilities that use landfill gas. These facilities use an incineration
method that turns rubbish into electricity or steam to heat, cool, light and otherwise
power homes through the process of combustion; they are clean-burning facilities that
are environmentally friendly. The facilities currently in existence use a gasification process
or methane gas release from landfills to generate electricity. Also, Turkey is in the process
of developing modern waste-to-energy plants that are clean-burning using municipal
and commercial solid waste.
Some also believe that Turkey has great potential in the geothermal sector. There
are currently two such geothermal plants in operation, and several in the planning stage.
Also, there is some private investment interest in the solar energy market, but as of 2011,
solar energy remains untapped in the Turkish energy market.
VI
THE YEAR IN REVIEW
i The Draft Electricity Market Law
The Draft EML, which was recently published by the MENR, introduces major changes
in the current EML. If the Draft EML is passed by the Turkish parliament in its current
form, a pre-licencing process for generation activity and a rather different penalty regime
for distribution companies will be introduced. Additionally, there will be revisions made
regarding the types of licence issued, and the powers held by EMRA.
Market activities
According to the Article 4 of the Draft EML, market activities will be generation
activities, transmission activities, distribution activities, wholesale activities, retail sale
activities, market operation activities, export activities and import activities. As described
below, wholesale and retail sale activities will be carried out under the supply licence.
Changes in the types of licence
One of the major changes that the Draft EML introduces is that all wholesale and retail
sale activities are to be combined under a new single licence called the ‘supply licence’.
Supply licence holders will be able to carry out wholesale and retail sale activities without
any regional restriction. Temporary Article 12 of the Draft EML provides that existing
wholesale and retail sale licence holders will be granted a supply licence ex officio and free
of licence issuance charges. The supply licence will not prejudice licence holders’ rights
11 Published in the Official Gazette No. 27809, dated 8 January 2011.
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