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Unlicensed Renewable Energy Generation: A Review of Regulation and Applications in the Context of Turkey

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  • Mustafa Gozen

    (Energy Market Regulatory Authority, Electricity Market Department, Ankara, Turkey.)

Abstract

Turkey has stipulated that renewable energy sources (RES) will have at least 30% share in electricity generation by 2023. To reach this target, a renewable energy promotion law (Law No. 5346) was enacted in 2005 and later amended in 2011. Through Law No. 5346, Turkey has launched a feed-in tariff (FIT) for RES-based electricity with additional premium for the use of local equipment. The FIT is guaranteed for 10 years from the date of operation and valid only for RES power plants commissioned between the 18th May, 2005 and the 31th of December 2020. In addition, RES power plants with a capacity of up to 1 MW are exempted from licensing and establishing legal entities. There is an increasing demand to install unlicensed RES generators, mostly solar power plants, all over the country. At least one consumption unit must be associated with an unlicensed power plant. Excess generation from unlicensed RES power plants is automatically priced at the FIT for 10 years. Except for the FIT mechanism, unlicensed generators have no options to sell unconsumed electricity in the electricity market. The main difficulties lie in limited connection possibilities, the selection of plant locations, and coordination among relevant authorities. Moreover, an awareness campaign would help people to better understand the related regulation and applications.

Suggested Citation

  • Mustafa Gozen, 2015. "Unlicensed Renewable Energy Generation: A Review of Regulation and Applications in the Context of Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 1-13.
    • Handle: RePEc:eco:journ2:2015-01-01
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    References listed on IDEAS

    as
    1. Mustafa G zen, 2014. "Renewable Energy Support Mechanism in Turkey: Financial Analysis and Recommendations to Policymakers," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 274-287.
    2. Baris, Kemal & Kucukali, Serhat, 2012. "Availibility of renewable energy sources in Turkey: Current situation, potential, government policies and the EU perspective," Energy Policy, Elsevier, vol. 42(C), pages 377-391.
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    Cited by:

    1. Yalılı, Mehmet & Tiryaki, Refik & Gözen, Mustafa, 2020. "Evolution of auction schemes for renewable energy in Turkey: An assessment on the results of different designs," Energy Policy, Elsevier, vol. 145(C).

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    More about this item

    Keywords

    Unlicensed generation; distributed generation; electricity market; Turkey;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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