Turkey has introduced a more comprehensive and detailed regulatory regime for incentives available when using domestically manufactured equipment in renewable energy generation. The new regime outlines increased details about the terms, applicable amount, documentation, and supervision of additional participation prices for using domestically manufactured equipment in electricity production facilities based on renewable resources.

The Regulation on Supporting Domestically Manufactured Equipment Used in the Production Facilities Based on Renewable Energy Resources (“Regulation”) was published in Official Gazette number 29752 on 24 June 2016. The Regulation was issued in accordance with the Law on Utilization of Renewable Energy Resources for the Purpose of Generating Electrical Energy numbered 5346.

The Regulation’s main provisions include:

  • License holder entities wishing to benefit from the additional domestic participation price for the first time must apply to the Ministry of Energy and Natural Resources (or institution authorized by the Ministry) by 1 August of each year. The Regulation outlines specific documents required for such applications.
  • The additional domestic participation price will be announced by 31 October of each year.
  • The additional domestic participation price will be granted to applicants for five years, starting from the production facility’s commissioning. It is calculated via a formula included in the Regulation.
  • The Manufacturing Determination Board has discretion to inspect equipment used in the production facilities by license holder entities which apply for the additional domestic participation price.

The Regulation supersedes the Regulation on Domestically Manufactured Equipment Used in the Production Facilities Based on the Renewable Energy Resources published in Official Gazette number 27696 on 19 June 2011. Please see this link for the full text of the Regulation (only available in Turkish).

Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.