What are the main energy laws in Turkey?

Turkey's energy sector is regulated by the Electricity Market Law No. 6446, Natural Gas Market Law No. 4646, Petroleum Market Law No. 5015, Renewable Energy Law No. 5346 (YEK), and the LPG Market Law No. 5307. The Energy Market Regulatory Authority (EPDK), originally established under Law No. 4628 and restructured under Law No. 6446, oversees licensing, tariff regulation, and market supervision across all energy sectors.

Can foreign companies invest in Turkey's energy sector?

Yes, under the Foreign Direct Investment Law No. 4875, foreign investors enjoy national treatment and can invest in Turkey's energy sector without foreign ownership restrictions. Foreign companies can obtain generation, distribution, and supply licenses under Electricity Market Law No. 6446 and Natural Gas Market Law No. 4646 on equal terms with domestic investors. Profit repatriation is fully guaranteed under Law No. 4875.

What incentives exist for renewable energy in Turkey?

The Renewable Energy Law No. 5346 provides a feed-in tariff mechanism (YEKDEM) for renewable energy sources including solar, wind, geothermal, biomass, and hydroelectric power. Additional incentives include domestic equipment bonuses, licensing exemptions for small-scale installations under Electricity Market Law No. 6446, and reduced land allocation fees. Turkey also offers investment incentive certificates under Presidential Decision No. 2012/3305 for large-scale energy projects.

What is EPDK and what does it regulate?

EPDK (Energy Market Regulatory Authority) is Turkey's independent energy regulator established under Law No. 4628 and restructured under Electricity Market Law No. 6446. EPDK issues licenses for electricity generation, transmission, distribution, and supply; sets regulated tariffs; monitors market competition; enforces technical standards; and has the authority to impose administrative fines for regulatory violations across electricity, natural gas, petroleum, and LPG markets.

How are energy disputes resolved in Turkey?

Energy disputes in Turkey can be resolved through administrative proceedings before EPDK, appeals to administrative courts against EPDK decisions under the Administrative Procedure Law No. 2577, commercial litigation in Turkish courts under the Code of Civil Procedure No. 6100, or international arbitration under bilateral investment treaties and the International Arbitration Law No. 4686. Power purchase agreement disputes typically follow the dispute resolution mechanism specified in the contract.

Energy Law

Energy law is one of the branches of law. With the rapid development of industry and technology, the need for and importance of energy has increased more than ever before. Energy laws regulate energy use and tax renewable and non-renewable energy. These laws include legal regulations relating to the exploration, extraction, processing, distribution and supply of energy resources.

Although energy law emerged in the twentieth century, its importance has increased with the development of technology. Following rapid developments in industry and technology, energy has become the most important issue of our time. Countries that once fought for land and gold are now defined by their energy strategies because energy is very important to countries. The decline in energy resources and rapid consumption of existing energy resources has created the need to establish laws between countries.

Energy law generally covers areas related to the markets for electricity, nuclear energy, natural gas, oil, liquefied natural gas and renewables.

What Licenses Are Required for Energy Generation in Turkey?

The Energy Law ensures that companies operating in the energy sector operate within the framework of legal regulations and standards. This means that energy companies must obtain the necessary permits to extract, process, transport and distribute energy resources and comply with legal requirements on issues such as environment, safety and health.

The Energy Law also regulates contracts between energy suppliers and consumers. These contracts define obligations and rights between parties and provide a legal framework for resolving business disputes.

What are the subsections of energy law?

Turkish Renewable Energy Incentives (YEKDEM/YEKA)
Energy Source	Legal Framework	License Exemption Threshold	Feed-in Tariff Duration	Key Incentive
Solar (PV)	Law No. 5346 + YEKA Regulation	Under 5 MW	10 years	YEKA auction-based pricing
Wind	Law No. 5346 + YEKA Regulation	Under 5 MW	10 years	YEKA auction-based pricing
Geothermal	Law No. 5346	Under 5 MW	10 years	Premium tariff rate
Biomass	Law No. 5346	Under 5 MW	10 years	Premium tariff rate
Hydroelectric	Law No. 5346	Under 5 MW	10 years	Standard YEKDEM rate

What Incentives Are Available for Renewable Energy Projects in Turkey?

The law on the use of renewable energy sources to produce electrical energy.
Law on the establishment and operation of nuclear power plants and the sale of energy.
Law of geothermal resources and natural mineral waters.
Natural Gas Market Law.
Oil Market Law.
Liquefied Petroleum Gas Market Law.

How Does Energy Law Interact With Environmental and Investment Regulations?

Energy Market Licensing Requirements
Activity	Regulatory Body	License Required	Duration	Foreign Ownership Limit
Electricity Generation	EMRA/EPDK	Generation License	Up to 49 years	100%
Electricity Distribution	EMRA/EPDK	Distribution License	Up to 49 years	100%
Natural Gas Import	EMRA/EPDK	Import License	Up to 30 years	100%
Natural Gas Distribution	EMRA/EPDK	Distribution License	30 years (exclusive zone)	100%
Petroleum Exploration	MAPEG	Exploration License	5 years (renewable)	100%

How Can Foreign Investors Participate in Turkey’s Energy Market?

Saving energy is a public activity. For this reason, it is an area in which not only private law regulations are applied, but also areas of public law such as administrative law and competition law. Regulatory bodies such as the Energy Market Regulatory Authority also guide this sector. From this standpoint, it becomes clear that energy law has different and more dispersed legislation than other branches of law.

There is a relationship between energy law and environmental law. The production and use of energy results in environmental impacts. The use of fossil fuels increases greenhouse gas emissions and climate change. The purpose of the relationship between energy law and environmental law is to produce energy in a way that causes minimal harm to the environment. The government is obligated to ensure the basic goal of “sustainable development” on the one hand and “environmental protection” on the other hand, which can only be achieved by using renewable energy sources. The Energy Law also establishes regulations to ensure environmental sustainability and encourage the efficient use of energy resources.

Serka Law Firm services in the field of energy law:

Preparing contracts related to energy law.
Providing legal consulting services to energy companies.
Obtaining permits related to the energy market.
Preparing turbine and installation contracts.
Providing legal consulting services in the field of environmental law, constitutional law, and international law.
Providing legal consulting services in the field of investment in energy companies.
Participation in relevant lawsuits.

Serka Law Firm provides various legal services in the field of energy law and related laws. Our lawyers provide legal consultations to various companies in this field. We cooperate with power plants, including nuclear power plants. For more information in this area, you can contact our lawyers.