1. Introduction
Operating in Turkey’s electricity market—whether in generation, transmission, distribution, or supply—requires strict adherence to the legal framework established by Law No. 6446 and related regulations. The Energy Market Regulatory Authority (EPDK) plays a central role in granting licenses, supervising activities, and ensuring compliance.
This guide outlines the types of licenses, application processes, unlicensed generation rules, additional permitting requirements, and possible sanctions.
2. License Requirement and Legal Character
Under Article 4 of Law No. 6446, engaging in any electricity market activity without a license is unlawful and subject to administrative sanctions, including monetary fines and suspension of activities.
A license is an administrative permit and a regulatory administrative act issued by EPDK, enabling lawful participation in the market.
3. Types of Licenses in the Electricity Market
a) Generation License – For legal entities establishing and operating electricity generation facilities.
b) Distribution License – Exclusive rights granted to companies for regional electricity distribution.
c) Supply License – Authorizes wholesale or retail electricity sales to end-users.
d) OIZ Distribution License – For Organized Industrial Zones’ internal distribution.
e) Transmission License – Exclusively granted to TEİAŞ for nationwide high-voltage transmission.
f) Market Operator License – Granted to EPİAŞ, responsible for operating electricity markets.
4. License Application Process
Step 1: Submit application to EPDK (written or electronic).
Step 2: Provide documents: company registry details, technical reports, investment program, financial feasibility, connection opinions.
Step 3: EPDK conducts technical, financial, and legal review.
Step 4: If approved, EPDK Board issues the license (valid up to 49 years).
Note: Transfers, pledges, or mergers require prior EPDK approval.
5. Unlicensed Electricity Generation
Real or legal persons can generate electricity without a license if:
- Installed capacity is below the legal limit,
- Grid connection agreement is in place,
- Technical approvals are obtained.
Surplus electricity can only be sold to the relevant supply company, not on the open market.
6. Additional Permits Required
A license alone is not enough to start operations. Investors must also secure:
- Environmental Impact Assessment (EIA) approval or exemption,
- Zoning plan approval and construction permit,
- Connection and technical approvals from TEİAŞ/TEDAŞ,
- Public land usage permissions, if applicable.
7. Sanctions and Supervision
EPDK monitors licensed entities and can impose sanctions for non-compliance, including:
- Administrative fines,
- Suspension of activities,
- License revocation under Articles 16–17 of Law No. 6446.
8. Conclusion
Licensing in Turkey’s electricity market is a complex yet essential process for lawful operations. Companies must carefully navigate EPDK’s licensing requirements, secure additional permits, and maintain ongoing compliance to avoid penalties.
Given the evolving nature of energy regulations, professional legal and technical guidance is strongly recommended to streamline procedures, mitigate risks, and ensure long-term success in Turkey’s dynamic energy sector.
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