Turkey has extended the deadline for eligible energy projects to benefit from exemptions and discounts, adding five further years to become operational. Qualifying projects must now become operational by 31 December 2025 in order to receive the incentives available for their first ten years of operation.

Cabinet Decree numbered 2017/10451 on Extension of Times Within the Scope of the Fourth Paragraph of Provisional Clause 4 under the Electricity Market Law numbered 6556 (“Decree”) was published in Official Gazette number 30137 on 28 July 2017, entering into effect on the same date. The Decree amended Provisional Article 4/4 of the Electricity Market Law numbered 6446 (“Law”). 

Eligible facilities can benefit from the following incentives during the first ten years of operation:

  • 85% discount on their permit, right of way and usage licenses
  • Exemption from paying Forestry Villagers Development Revenue fees
  • Exemption from paying Forestation and Erosion Control Revenue fees.

Under the Law, the following facilities qualify for the incentives, provided the facility becomes operational by 31 December 2025:

  • Electricity generation facilities based on renewable energy sources.
  • Electricity generation facilities in which certain specific mines are used as input in the relevant mine operating license and permission. The mines are listed in IV group (b) of Article 2 in Law numbered 3213.
  • Access roads to specified mines.
  • Energy transmission lines, including those to be transferred to Turkish Electricity Transmission Corporation (TEİAŞ) and distribution companies in accordance with their license.

Please see the link for full text of the Decree (only available in Turkish).

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