Articles

Solar Electricity Generation in Turkey, Licensed or Unlicensed?

The legislation governing unlicensed electricity generation is limited compared to licensed electricity generation.

Turkey enjoys an optimal geographic location for developing solar power plants with the average daily solar insolation of 2,640 hours, and average daily solar radiation of 1,311 kWh/m2. Yet, its solar potential of 380 billion kwh/year electricity remains unexploited. The Turkish government has been formulating policy changes to encourage solar generation, not necessarily only because it is the most environmental-friendly electricity generation system but also (and more so) because of its need to diversify its energy portfolio, currently dependent primarily on fossil fuel. 

With such policy changes, the interest in the solar market seems to have increased in the last year both with respect to licensed as well as unlicensed generation. 

Unlicensed Solar Electricity Generation 

Although the rule is to obtain an electricity generation license from the Energy Market Regulatory Authority (“EMRA”) to generate electricity, various generation facilities are exempt from the obligation to obtain any licenses (whether a pre-license or a generation license) from EMRA, and various activities are also not required to be conducted by a legal entity.