BASIC WAYS TO BE FOLLOWED IN ELECTRIC ENERGY GENERATION 18 August 2020

Today, there are basically two ways to establish an electricity power generation facility. The first of these is Unlicensed Electricity Generation and the other is Licensed Electricity Generation.

The "Autoproducer License", which enables a facility or a person to generate electricity to be consumed by himself, has been abolished with the Electricity Market Law ("Law") that entered into force in 2013. On the same date, another regulation that can be used for this purpose, the "Unlicensed Electricity Generation" path was introduced.

UNLICENSED ELECTRICITY GENERATION

With unlicensed electricity generation; it is aimed to meet the electricity needs of consumers from the generation facilities closest to the consumption point and to bring small-scale production facilities to the national economy. Thus, electricity generation is made possible without the need to obtain a license and establish a company.

Unlicensed electricity generation is generally fed from natural resources and renewable energy resources are utilized.

However, the scope of this provision, which provides exemption from the license requirement, is limited. Because there are many conditions for unlicensed electricity generation within the scope of the 14th article of the Law.

The most important of these is that the facility has an upper limit of installed power. In order to be able to produce unlicensed electricity above a certain energy level, it will have to be covered by the other clauses of the same provision..

LICENSED ELECTRICITY GENERATION

As mentioned above, Unlicensed Generation is generally an opportunity that enables local and small-scale enterprises to meet their energy needs and to easily establish energy plants.

On the other hand, for larger companies, other clauses in the 14th article of the Law will need to be examined. If the other conditions in these sub-clauses also are not fulfilled, a generation license must be obtained in order to produce energy.

In electrical energy production to be made by obtaining a license in this context, companies will not only be able to produce as much as their own needs, but also have the opportunity to sell this electricity by generating surplus.

At this point, it is necessary to examine the relevant legislation for both the facilities established to be used for their own needs and the projects created to generate electrical energy through waste heat recovery in order to ensure energy efficiency and the incentives provided for these projects.

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