Articles

Unlicensed Electricity Generation: New System for Use of Renewable Energy Resources

Unlicensed electricity generation is a unique system based on the use of renewable energy.

Currently, the use of renewable energy resources is becoming more popular globally in energy production for many reasons (e.g., environmental issues and energy security). Turkey also supports developments of renewable energy projects by adopting new legislation to (i) comply with environmental related international agreements and protocols (i.e., the Kyoto Protokol); (ii) increase use of its local resources as a country with a huge potential of electricity generation based on hydro, solar and wind; (iii) decrease dependence on foreign energy resources; and (iv) protect the environment, etc. 

Unlicensed electricity generation is a unique system based on the use of renewable energy resources which gives the electricity subscribers the opportunity to produce their own electrical energy in limited amounts and to sell the surplus. The legal framework and its implementation are summarized below with respect to unlicensed electricity generation activities according to Turkish law.

Legal Framework

After the Electricity Market Law (the “Electricity Market Law”) went into effect, the scope of activities which may be conducted without the requirement of obtaining a license has been limited. Article 14 of the Electricity Market Law provides a list of such activities.