Ministry of Energy and Natural Resources (ETKB)
In Turkey, energy policy is created and implemented by the ETKB. In that respect, ETKB is in charge of setting and implementing long-term plans by determining a strategy in relation to the electricity market based on this task.
Energy Market Regulatory Authority (EMRA)
Law No. 4628 was enacted in Turkey in 2001 in order for the electricity market to be accessible to private entities and for electricity market operations to be conducted under the conditions of a free market economy and Energy Market Regulatory Authority (EMRA) was established to regulate this new structure. Law No. 4628 was renamed the ‘Law on Organisation and Duties of Energy Market Regulatory Authority’ upon the enactment of the Electricity Market Law (EML) No. 6446 in 2013. Law No. 4628 is still in force as the law that regulates the formation and tasks of EMRA. In that regard, EMRA acts as an independent administrative authority in charge of regulating and auditing electricity market in line with this law as well as the duties and tasks ascribed by the EML.
According to the aforementioned legal regulations, EMRA is the administrative authority primarily responsible for granting licences identifying the operations permissible for legal and natural persons in energy and electricity sectors in addition to their rights and liabilities arising from those activities and drawing up the existing contracts falling under the scope of the transfer of operating right. Furthermore, monitoring the market performance, creating and amending performance standards and distribution and customer services regulations and have such implemented, determining and implementing the pricing principles in the sector and the formulae related to the adjustments to be required because of inflation are among the other matters for which EMRA is responsible. On the other hand, perhaps one of the most important of EMRA’s tasks is to audit the market. In that regard, EMRA is responsible for ensuring legal persons operating in the electricity market act in compliance with the laws and regulations in force. In addition to this responsibility, EMRA is authorised to impose administrative sanctions granted to it under the relevant laws in relation to any discrepancies that are ascertained.
General Directorate of Renewable Energy (YEGM)
Article 10/B of the Law on Organisation and Duties of Ministry of Energy and Natural Resources No. 3154 provides that procurement of utilisation of renewable energy resources in Turkey falls under the responsibility of the YEGM affiliated to the ETKB. Pursuant to the duties and powers ascribed under the relevant legal regulations, YEGM is responsible for:
- conducting measurements to determine and evaluate all kinds of energy resources including, especially, the hydraulic, wind, geothermal, solar, biomass and other renewable energy resources in the country, preparing feasibility and sample implementation projects; developing pilot systems in collaboration with research institutes, local administrations and non-government organisations and conducting promotion and advisory activities;
- creating awareness about the efficient use of energy in the industry and buildings and conducting activities to that end;
- monitoring and auditing energy efficiency implementation projects and research and development projects approved by the Energy Efficiency Coordination Authority;
- monitoring and evaluating the studies and developments within the fields of renewable energy and energy efficiency, determining the Ramp;D objectives and priorities in line with the requirements and conditions of the country, performing and having third parties perform Ramp;D activities to that end, disclosing the outcomes of those activities to the public along with the economic analyses; and
- developing projections and suggestions for evaluating renewable energy resources and increasing energy efficiency.
State-owned energy companies
The Turkish Electricity Administration (TEK) was established in line with Law No. 1312 enacted in 1970 with the objective of eliminating the distributed structure in the electricity sector and ensuring operational integrity according to which specified areas of the licensed companies as well as the generation, transmission, distribution and sales of electricity outside the boundaries of municipalities were incorporated under TEK. To offer services more efficiently and effectively in line with contemporary practices and also in compliance with the privatisation policies, TEK was reorganised into two separate state economic enterprises, TEAŞ and TEDAŞ, pursuant to Council of Ministers Decree No. 93/4789 dated 12 August 1993.
In 2001, public electricity assets were organised under three distinct legal entities pursuant to Law No. 4628: the operations conducted by TEAŞ were distributed to three separate companies, namely EÜAŞ, TEDAŞ and TEİAŞ.
Electricity Generation Company (EÜAŞ)
EÜAŞ is a state enterprise that aims to deal with generation and selling of safe, sustainable, high-quality, efficient, cost-effective and eco-friendly electricity energy in line with the principles of profitability and efficiency with due regard for public benefit. The share of the company in generation of electricity is reduced in a planned way for the benefit of private electricity companies according to the strategic plan conducted for rendering a free market, the privatisation plan and relevant legal regulations. Currently, the company operates varying types of electricity plants with an installed power of 20,348MW, 13,155.70MW of which accounts for hydroelectric plants.
Turkish Electricity Transmission Company (TEİAŞ)
All the electricity transmission in Turkey is operated by TEİAŞ as a result of the state’s general energy policy. TEİAŞ is a public economic enterprise that conducts its operations in line with the transmission licence granted by EMRA.
Turkish Electricity Distribution Company (TEDAŞ)
TEDAŞ, one of the companies incorporated as a result of the demerger in 2001, is mainly responsible for performing electricity distribution operations. Notwithstanding the foregoing, Turkey was divided into 21 distribution zones that were entirely privatised under the project for privatisation of public-owned electricity enterprises in order to create a competitive environment in electricity distribution and the retail sales industry and launch the required reforms.
TEDAŞ is still in good standing and fulfils the functions of brokering and auditing the settlement of general lighting expenses ascribed to TEDAŞ under EML in addition to assuming some other tasks such as nationalisation ascribed through relevant legal regulations.
Turkish Electricity Trade and Contracting Company (TETAŞ)
Incorporated as the first and sole public energy wholesale company following the demerger of TEAŞ into three companies under the privatisation initiatives in energy sector in 2001, TETAŞ is an Economic State Enterprise with liability limited with its capital and undertakes electricity trade and contracting activities in line with the general energy and economy policy of the State.
In this context, TETAŞ purchases electricity from energy plants owned by EÜAŞ, plants operated through build-operate, build-operate-transfer and operating right transfer models, other countries under import agreements and balancing markets and sells it to electricity distribution companies, commissioned supply companies, customers with direct connection to the transmission system, other countries within the scope of export agreements and balancing markets.
Energy Exchange Istanbul (EXIST) | (EPİAŞ)
The company was incorporated on 18 March 2015 in line with the provisions of Electricity Market Law No. 6446 of 14 March 2013 and Turkish Commercial Code No. 6102. EPİAŞ is mainly involved in planning, establishing, developing and operating the energy markets included in the market operating licence in an effective, transparent and reliable manner so as to satisfy the requirements of the energy market. It aims to ensure reliable reference price formation without discriminating among equal parties and become an energy market operator allowing for trading activities through market mergers along with the highest level of liquidity based on the increasing number of market actors, product range and transaction volume. It is the sole entity that acts as an energy exchange market in Turkey.
Municipalities are empowered to organise tenders for granting the right to utilise landfill gas to companies intending to establish plants using landfill gas as fuel for biomass plants. In addition, energy plants file applications to the relevant municipalities to fulfil a number of requirements such as a building licence, earthquake resistance certificate, workplace opening and operating licence just like enterprises in other sectors, and they are subject to the supervision of municipalities in such non-sector-specific matters.
Apart from explanations provided above, some of the governmental authorities are critical of allocation of primary resources. For instance, a water utilisation agreement has to be executed with the General Directorate of State Hydraulic Works (DSİ) in relation to hydroelectric plants. Geothermal energy, on the other hand, is under the responsibility of the General Directorate of Mining affiliated with the ETKB. Permits for measurement stations for wind plants and solar plants are granted by the General Directorate of Meteorology. The Ministry of Environment and Urban Affairs is in charge of environmental impact assessment reports, while forestry permits are issued by the General Directorate of Forestry affiliated with the Ministry of Forestry and Water Affairs. The Ministry of Finance conducts the processes for expropriation of the real estate required by the licence holder generation companies.
Apart from those listed above, other public enterprises and organisations may be empowered to issue certain administrative permits according to the type of the primary energy, location of the resource and relevant conditions. For instance, if the project site falls within an area that is entirely or partially under protection, the High Council of Cultural and Natural Heritage Preservation affiliated with the Ministry of Culture shall be involved in the process, whereas the Provincial Directorate of Agriculture shall be responsible for determining and certifying the agricultural attribute of any given land.
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