THE IMPACT OF UNLICENSED PV SYSTEM ON ENERGY MARKETSolutionU

THE IMPACT OF UNLICENSED PV SYSTEM ON ENERGY MARKET

Solution

Unlicensed electricity generation is regarded to be a new field of investment in the electricity market In this context, it presents opportunities for consumers and investors. The consumer considers the opportunity to generate electricity with a view to meet individual need of electricity without establishing a company and obtaining a license for the power plant from energy regulator of concerned country.

In terms of renewable energy policy, significant importance must be given to

a) encouraging energy generation from Renewable energy source (RES) in a secure, economic and cost effective manner,

b) expanding the utilization of RES of the country, and

c) increasing the diversification of energy sources.

In addition, reducing greenhouse gas emissions, making use of waste products and protecting the environment, and developing the related mechanical and/or electro-mechanical manufacturing sector are other main pillars of the energy policy.

All market activities must be licensed by Energy Regulating Authority with some exemptions. Among other power
plants specified in later sections of this article, renewables with a capacity of up to 1 MW and certain cogeneration power plants are exempted from licensing obligation. Separate licenses are required for each market activity and facility. First a pre-license is given for the procurement of required approvals and permits to install a power plant. Licensees may ask for public interest decision for expropriation from ERA. License applicants must be established as joint stock or limited liability companies in accordance with the provisions of the Country Commercial Code. If established as joint stock companies, all shares of the applicant company must be registered shares, except for the shares traded in the stock exchange.

unlicensed electricity production is a new activity in the market that allows consumers to carry out electricity generation. In this sense, the unlicensed generation is an important development in the country. The principles and conditions of unlicensed power generation have been regulated by the By-Law on Unlicensed Electricity Generation in the Electricity Market.

There is a high demand from investors for unlicensed electricity generation in a country likeTurkey. Solar
generation leads in terms of applications. The main difficulties lie in limited connection possibilities,
the selection of plant locations, and coordination among relevant authorities. Moreover, an awareness
campaign would help people to better understand the related regulation and applications.