The global transition to renewable energy has accelerated interest in solar power plants (SPPs) due to their cost-effectiveness and environmental benefits. In Turkey, solar power has become a major pillar of renewable energy investment. However, establishing a solar power plant requires compliance with complex legal frameworks, licensing requirements, and technical standards.
In this article, we will explore the legal conditions, licensing steps, environmental obligations, and financial considerations for setting up a solar power plant in Turkey.
1. Legal Framework for Solar Power Plants in Turkey
The establishment of a solar power plant is regulated by various laws and regulations, including:
- Electricity Market Law No. 6446
- Law No. 5346 on Renewable Energy Resources (YEK Law)
- Environmental Law No. 2872 (Environmental Impact Assessment – EIA)
- Zoning Law No. 3194
- EPDK Licensing Regulations (Energy Market Regulatory Authority)
- Occupational Health and Safety Law No. 6331
The Energy Market Regulatory Authority (EPDK) is the key body issuing licenses, while the General Directorate of Renewable Energy (YEGM) oversees technical standards and renewable energy resource certifications.
2. Land Selection and Zoning Requirements
2.1. Land Suitability
The first step in establishing a solar power plant is selecting appropriate land with sufficient solar irradiation. Investors often rely on data from the General Directorate of Meteorology to determine the solar potential of a location.
Key conditions:
- Land should ideally have flat or slightly sloped terrain to reduce construction costs.
- It must not be classified as protected land (e.g., agricultural lands of 1st degree, forest lands, or cultural heritage sites).
- Investors may need zoning plan changes if the land is not designated for energy production.
2.2. Land Ownership
- The investor must either own the land or sign a long-term lease agreement (typically 20-30 years).
- In certain cases, public lands can be leased through tenders organized by the Ministry of Energy.
3. Licensing: EPDK Procedures
3.1. License vs. Unlicensed Projects
Solar power projects are divided into licensed and unlicensed categories:
- Unlicensed Solar Power Plants (≤1 MW):
- No generation license required from EPDK.
- Must be connected to the local distribution grid.
- Common for self-consumption or small-scale commercial generation.
- Licensed Solar Power Plants (>1 MW):
- Require a generation license from EPDK.
- Must compete in renewable energy allocation tenders (YEKA projects).
- Can sell electricity directly to the market under the balancing and settlement system.
3.2. Pre-Licensing Steps
For licensed projects, a pre-license (ön lisans) is required, valid for 24-36 months. During this time, investors must:
- Secure land rights (title deed or lease agreement).
- Obtain EIA approval or an exemption letter.
- Acquire a grid connection agreement from TEİAŞ (Turkish Electricity Transmission Company) or the local distribution company.
4. Environmental Impact Assessment (EIA)
Solar power plants with a capacity above 10 MW require a formal EIA process under Environmental Law No. 2872. For smaller projects, the authorities may issue an “EIA Not Required” certificate.
The EIA process examines:
- Visual and landscape impact.
- Impact on agricultural land and ecosystems.
- Waste management during construction and operation.
Approval of the EIA is mandatory before EPDK issues the generation license.
5. Technical and Construction Standards
Solar power plant construction must comply with Turkish Standards Institution (TSE) norms and international safety regulations.
Key technical considerations:
- PV Panel Installation: Must follow IEC and ISO certifications.
- Inverter and Transformer Systems: Must meet grid compatibility standards.
- Fire and Lightning Protection: Mandatory fire suppression and grounding systems.
- Occupational Safety: Compliance with Law No. 6331, including proper training and safety equipment for construction crews.
6. Grid Connection and TEİAŞ Approvals
A solar power plant must be integrated into the national grid. This requires:
- Grid Connection Agreement: Signed with TEİAŞ or the local distribution company.
- Capacity Approval: Ensuring that the local grid can handle the additional generation capacity.
- Metering and SCADA Systems: Real-time monitoring to comply with national energy balancing requirements.
Without grid approval, the plant cannot start commercial operation.
7. Incentives and YEKDEM Mechanism
Turkey’s Renewable Energy Resources Support Mechanism (YEKDEM) offers significant advantages for solar power investors:
- Feed-in Tariffs: Guaranteed purchase prices for electricity produced (e.g., $0.133/kWh for solar under certain schemes).
- Local Equipment Bonus: Additional tariffs for projects using locally manufactured panels, inverters, or other components.
- Tax Incentives: KDV exemption, customs duty exemption, and accelerated depreciation for renewable energy investments.
8. Operational Obligations
Once operational, the license holder must:
- Submit monthly production reports to EPDK and the relevant distribution company.
- Maintain the solar plant with regular panel cleaning and inverter inspections.
- Comply with environmental standards (e.g., proper disposal of defective panels).
- Participate in market settlement and balancing mechanisms.
9. Financial and Cost Considerations
The cost of establishing a solar power plant varies depending on location and capacity:
- 1 MW plant cost: Approximately $500,000 – $700,000 (USD) as of 2025.
- Maintenance costs: Around $10,000/year per MW.
- EPDK fees: License application and annual supervision fees apply to licensed plants.
10. Legal Risks and Disputes
Common legal issues include:
- Zoning and land ownership disputes (especially with agricultural lands).
- Grid connection delays or disputes with TEİAŞ.
- EIA-related lawsuits by environmental organizations.
- Franchise or EPC contract disputes with contractors.
These disputes are often resolved in administrative or commercial courts.
11. Timeline for Solar Power Plant Establishment
The average timeline for establishing a licensed solar power plant is 18-30 months, which includes:
- Feasibility studies and land acquisition (3-6 months).
- EIA process and pre-licensing (6-12 months).
- Construction and grid connection (6-12 months).
Unlicensed projects (≤1 MW) can typically be completed in 6-12 months.
12. Importance of Legal Counsel
Given the multi-layered legal and regulatory framework, investors should consult with a lawyer specialized in energy law to:
- Manage EPDK and TEİAŞ applications.
- Draft lease and EPC (Engineering, Procurement, Construction) contracts.
- Handle disputes or appeals regarding licensing and environmental permits.
13. Conclusion
Establishing a solar power plant in Turkey requires thorough legal planning, compliance with EPDK licensing rules, grid connection agreements, environmental approvals, and adherence to safety and technical standards.
Thanks to YEKDEM incentives, solar power projects can offer both environmental benefits and strong financial returns, especially when legal and technical processes are handled efficiently.
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