TURKISH ENERGY LAW AND

ENERGY MARKET REGULATORY AUTHORITY

Gözde Esen Sakar

BENER LAW OFFICEIstanbul, Turkiye

INTRODUCTION

Turkey is a “natural bridge”.

Turkey is an “energy player” in the Middle East and Western energy

markets.

INTRODUCTION

INTRODUCTION Turkey has a growing

economy demanding more energy.

Natural gas in electricity production.

Domestic energy supplies and renewable energies.

REFORM IN THE ENERGY SECTOR

Significant steps toward energy market liberalization and

privatization.

“Reform in the Energy Sector”

ENERGY LAWS AND REGULATIONS

The enactment of Electricty Market Law and Natural Gas Market

Law in 2001.

The Electricity Market Regulatory Authority was established and it was

later renamed as Energy Market Regulatory Authority .

ENERGY LAWS AND REGULATIONS

The Petroleum Market Law in 2003 and Liquefied Petroleum Gases

Market Law in 2005 was enacted. Code of Use of Renewable Energy

Resources for the Generation of Electrical Energy which was entered

into force on May 2005.

MAIN DUTY OF EMRA

Financially viable, stable and transparent  energy market,

within a competitive environment in order to provide sufficient

energy resources.

ELECTRICITY MARKET

The Turkish Electricity Authority (TEK), a public company having

monopoly in the electricity sector, was restructured in

1993.

ELECTRICITY MARKET

Electricity Market Law entered into force on

March 3, 2001.

ELECTRICITY MARKET Turkish Electricity Generation Transmission

Company, which performs the activities of electricity generation, transmission, and

wholesale, was legally unbundled and within this legal separation, three state owned entities were

formed.

Thereby, the activities of electricity generation, transmission, distribution and

trading are separated from each other through either legal or account unbundling.

LICENSE ACTIVITIES IN THE ELECTRICITY

MARKET All market activities in the electricity

market are conducted under particular licenses obtained from

EMRA. Under no condition can licenses be

transferred. Licensees are under inspection of

EMRA.

LICENSE ACTIVITIES IN THE ELECTRICITY

MARKET The transfers of shares of the licensee are

subject to the Board approval of EMRA.

An acquisition of right to vote and pledging for the shares, allocation of the privilege on the shares, termination of a

privilege and issuance of a dividend right certificate are subject to the Board

approval of EMRA.

LICENSE TYPES IN THE ELECTRICITY MARKET

Duly established Turkish companies, granted a license by EMRA, may

engage in generation, transmission, distribution, wholesale, retail sale, retail sale services, and import and export activities in the electricity

market.

LICENSING PROCESS

The license application process are concluded within forty five days by

EMRA.

If deemed necessary, that period may be extended by a decision of the

Board of EMRA.

NATURAL GAS MARKET The main duty of the Energy Market Regulatory Authority, which assumed regulatory responsibilities

pertaining to the natural gas market with the enactment of Natural Gas Market Law is to put in place

and to ensure the establishment of a liberal and competitive natural gas market.

According to Natural Gas Market Law, natural gas market activities are; import, export, wholesale,

transmission and distribution of natural gas.

LICENSING IN THE NATURAL GAS MARKET Import license, transmission license,

storage license, wholesale license, distribution license, compressed

natural gas (CNG) license and export license.

Licensing process is almost the same as electricity market licensing.

PETROLEUM MARKET

The petroleum market in our country is

being restructured as a consequence of the enactment of the

Petroleum Market Law on December

2003.

PETROLEUM MARKET

Petroleum Market Law has entrusted in EMRA the duty,

authority and responsibility for guidance, regulation, surveillance and supervision of the petroleum

market.

LICENSING IN THE PETROLEUM MARKET LAW

Refining, distribution, transmission, storage, processing, lube oil, bunker delivery,

transportation and vendor activity and elegible consumer.

As general qualifications, the persons to be granted licenses should be legal or real persons;

- residing in Turkey, - having commercial or industrial registry,

- income or corporate tax payer.

RENEWABLE ENERGY

Utilization of renewable energy resources in

Turkey as an alternative to fossil fuels has been

promoted and encouraged particularly over last a few years.

RENEWABLE ENERGY

The renewable energy resources covered by the Law are wind (rüzgar), solar (günes), geothermal (jeotermal), biomass (biyokütle), biogas (biyogaz), wave (dalga), stream (akinti), tidal (gel-git), river

(nehir) and arc (kanal) type hydroelectric generation facilities

Although geothermal energy is also covered by the Law, a separate draft Law on Geothermal Energy has been prepared by the Ministry of

Energy and Natural Resources and transferred to the Parliament for enactment, which is currently

under discussion in the relevant committees.

CONCLUSION In short, the Energy market and local or foreign energy

players in Turkey are subject to EMRA and its laws and regulations.

Pertaining to the economic sectors, within the framework of the new concept developed during the last decade,

while the governments try to create an attractive environment for capital investments and trade through

incentives, loans, tax/investment reduction and exemption, the administratively and financially autonomous

regulatory authorities regulate the market activities in a stable, transparent and non-discriminatory manner to

ensure the confidence of the investors.

BENER LAW OFFICEIstanbul,Turkiyewww.bener.av.trinbox@bener.av.tr

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