Energy Law Update – YEKDEM Extension of Time
The Presidential Decree No. 2949 (the “Decree”) was published in the Official Gazette No. 31248 dated September 18th, 2020 according to which, Renewable Energy Resources (“YEK”) certified generation license holders that is to start operation between January 1, 2021 and June 30, 2021 subject to the Renewable Energy Resources (“YEK“) support mechanism (“YEKDEM”) will be eligible to benefit from the incentives contemplated under the Articles 6 and 6/B of the Law on the Use of Renewable Energy Resources for the Purpose of Generating Electrical Energy (the “Law“), until December 31st, 2030.
Before the Decree, YEKDEM was only applicable for the YEK-certified generation license holders provided that their operations are commenced until December 31st, 2020. Energy companies have been expecting a time extension in YEK mechanism from the authorities considering the delays in the market due to COVID-19 and benefits provided by YEKDEM.
The Decree amended the time periods for benefiting from YEKDEM as follows:
- The prices in Schedule I in the Law will be applied until December 31st, 2030 for YEK certified production license holders that start their operations subject to the YEKDEM between January 1st, 2021, and June 30th, 2021.
- If the mechanical and/or electro-mechanical parts used in the YEK-certified production facilities that commence their operations between January 1st, 2021 and June 30th, 2021 have been manufactured domestically, the prices in Schedule II in the Law shall be applied to the prices in Schedule I, for an extra five years as of the date of operation of the generation facility with respect to the energy generated and transmitted to the transmission or to the distribution system.
In conclusion, long-awaited time extension in relation to YEKDEM was brought by the Decree and YEKDEM incentives are likely to preserve their importance within the energy market.
@ Sena Güngördü | Kesikli Law Firm