Energy Law

Energy projects involve long-term investment, extensive permitting and multi-party contracts. From development through operation, compliance with Turkish energy legislation is decisive for the sustainability of the investment.

Regulatory framework and EMRA

The Energy Market Regulatory Authority (EMRA, known in Turkish as EPDK) regulates and supervises the energy markets. Market activities generally require a licence from EMRA. EMRA decisions and administrative fines are administrative acts that can be challenged before the administrative courts.

Electricity generation projects

Pre-licence and licence

Electricity Market Law No. 6446 requires generation facilities to obtain a pre-licence first and a generation licence once the necessary permits are in place. During the pre-licence period, obligations such as securing ownership or usage rights, zoning plans and the environmental impact assessment must be completed within the set time.

Unlicensed generation

Facilities below a certain capacity and intended primarily for self-consumption may generate electricity without a licence. Their grid connection and the treatment of surplus energy are governed by the relevant regulation.

Renewable energy

Law No. 5346 promotes electricity generation from renewable sources, and the Renewable Energy Resources Support Mechanism (YEKDEM) is based on this law. The scope and duration of support for solar, wind, geothermal, hydroelectric and biomass projects are set by legislation.

Energy contracts

Engineering, procurement and construction (EPC) contracts, bilateral power purchase agreements, operation and maintenance agreements and project finance documents define how project risks are allocated. Drafting them consistently with the legislation and with each other helps prevent disputes.

Dispute resolution

Arbitration is frequently chosen to resolve disputes under energy project contracts. The scope of the arbitration clause, the governing law, and the seat and language of arbitration should be set out clearly during negotiations.

Natural gas and petroleum markets

Licensing, distribution and supply activities under Natural Gas Market Law No. 4646 and Petroleum Market Law No. 5015 are also regulated and supervised by EMRA.

Preparing for a consultation

For an initial assessment, prepare the project capacity and resource type, any existing pre-licence or licence documents, the grid connection opinion, title or usage rights over the site, environmental impact assessment decisions and signed or draft project contracts. In project acquisitions, these documents form the basis of the legal due diligence.