Regulation on Amending the Regulation on Certification and Support for Renewable Energy Resources has been published on the Official Gazette dated May 9, 2021 and numbered 31479 and has amended the Regulation on Certification and Support for Renewable Energy Resources (“Regulation”) which aims to encourage the production of electricity based on renewable energy sources. The regulation regulates the issuance of Renewable Energy Resource (“RER”) Certificate to the generation licensees for generation facilities based on renewable energy resources and the establishment and operation of the RER Support Mechanism. (tr.”YEKDEM”). The fundamental changes are as follows:

Changes Made in Definitions

The term “gas obtained from biomass (including land-fill gas)” has been excluded from the definition of RER and RER is defined as “non-fossil energy sources such as hydraulic, wind, solar, geothermal, biomass, wave, ocean currents and tides”.

Changes Made in the Scope of  (YEKDEM)[1]

Within the scope of Article 4 of the Regulation, the legal entities with generation license, which are engaged in generation activity based on renewable energy sources, can benefit from YEKDEM through the assigned suppliers in their region, within the scope of the Unlicensed Electricity Generation Regulation in the Electricity Market.

“The net energy amount given to the system by being produced in biomass-based generation facilities that will enter into operation after July 1, 2021 and have processes subject to different YEKDEM prices, is evaluated on the lowest of prices determined in the Presidential Decree dated January 29, 2021 and numbered  3453. “

As per Article 8 of the Regulation, the generation facilities that will operate partially or fully from the date January 1, 2021 to June 30, 2021 within the scope of the Presidential Decree dated September 17, 2020 and numbered 2949 will be able to benefit from YEKDEM until December 31, 2030. Pursuant to the 6th paragraph of the same Article, if the main equipment previously used in the facilities within the scope of YEKDEM is kept in the newly established generation facilities, the RER fee will not be applied for the new generation facility.

Changes have also been made for the obligations of YEKDEM participants (each licensed generation facility or assigned suppliers subject to YEKDEM). In this context, following the instructions provided by Turkish Electricity Transmission Corporation (tr.”TEİAŞ”),as a system operator, in accordance with the Article 23 of the Regulation and implementing all kinds of measures deemed necessary are among the obligations to be followed. Complying with the emergency and / or balancing power market load shedding instructions provided by the System Operator and fulfilling the instructions given in the relevant settlement period are regulated among the obligations of the generation license holder legal entities participating in YEKDEM.

Calculation of RER Total Price (tr.”YEKTOB”)[2] and RER Price (tr.”YEKBED”)

The total cost of YEKTOB to be paid in each relevant period for each licensed generation facility or assigned suppliers subject to YEKDEM will be calculated in accordance with the formula described in Article 11 of the Regulation. For each licensed generation facility or assigned supplier subject to YEKDEM, the YEKBED to be paid to the licensee or paid to the market operator by the licensee for the licensed generation facility will be calculated, by including YEKDEM income, as per formula described in Article 18 of the Regulation.

Refunds of Unfair and Undue Payments

In the event that (i) the legal entity holding a generation license is determined to benefit from YEKDEM although they do not have the right to participate in YEKDEM according to Article 27 of the Regulation, or (ii) in the applications made to the Energy Market Regulatory Authority and related institutions and organizations, legal entity holding a generation license is determined to provide misleading information and / or documents and (iii) unlicensed generation facilities that are determined to benefit from YEKDEM even though they do not meet the necessary requirements and have received excessive payments; the relevant amount will be updated with the interest rate determined in accordance with Article 51 of the Law No. 6183 on the Procedure for the Collection of Public Receivables and invoiced by the Market Operator to the relevant legal entity as per the aforementioned Article.

[1] As per the Article 3 / s of the Regulation, YEKDEM is defined as ” the support mechanism that includes the prices, terms, quantities and the procedures and principles regarding payments to be beneficial to the legal entities owning generation license and operating based on renewable energy resources personally and through the assigned suppliers in the regions of the persons producing from renewable energy resources within the scope of the Regulation on Unlicensed Electricity Generation in Electricity Market.”

[2] As per the Article 3 / t of the Regulation, YEKTOB is defined as “Prices determined by multiplying the amount of electrical energy produced in each of the licensed generation facilities belonging to legal entities subject to the RES Support Mechanism and the prices in the final RES list, in Turkish Lira or in Turkish Lira equivalent at the exchange rate of the Central Bank of the Republic of Turkey on the date the energy is supplied to the system and total price to be paid to the unlicensed producers.”