With the introduction of a recent omnibus legislative proposition presented to the Grand National Assembly on January 29, 2024, a significant legislative shift will occur in Turkiye’s renewable energy production sector.
This proposal, reportedly aimed at regulating floating photovoltaics and expanding renewable energy capacity by an estimated 80 gigawatts, represents a bold step toward sustainable development and increased renewable energy production by opening Turkiye’s lakes, reservoirs, and seas for solar and wind power projects without zoning requirements. From a legal standpoint, the amendments warrant a nuanced analysis, especially from the perspective of stakeholders in the energy sector such as investors aiming to invest in such projects as well as energy law practitioners and environmental advocates.
The primary aspect of the amendments is the changes made to the Coastal Law, which will allow investors to establish wind and solar power facilities on all aquatic bodies, including seas, reservoirs, and artificial or natural lakes. This is a significant departure from the current approach where the construction of electricity generation facilities is only possible on seawater. Moreover, according to the proposed amendments, the construction of these facilities will be exempt from zoning requirements, which can prove to be a significant hurdle in the current regime where investors must request a zoning order before the construction of the project.
The amendments introduce a novel approach to utilizing natural resources for energy production in comparison to both traditional land-based renewable energy projects and existing regulations in the area. However, while innovative, this approach also raises several legal considerations. First, the absence of zoning requirements for these projects simplifies the bureaucratic process, potentially accelerating the deployment of renewable energy technologies. However, it also necessitates robust environmental assessments to ensure that the ecological integrity of these water bodies is preserved. Therefore, in an environmental context, existing legal environmental frameworks such as environmental impact studies and reports should be given further consideration to prevent potential adverse impacts. It is also important to note that while the projects will not be subject to zoning requirements, they will nevertheless only be able to be constructed in zones that are designated as renewable energy sources.
Secondly, investors looking to establish these plants will have to apply for an electricity production license in line with the Electricity Market Law, in theory ensuring that the utilization of water bodies for energy projects is subject to oversight, aligning with broader objectives of sustainable water management. However, certain projects such as electric infrastructure designed to meet the electricity demand of the State Hydraulic Works or agricultural irrigation collectives will be established with the permission of State Hydraulic Works without the need for an electricity production license.
Moreover, while the proposed amendments allow for the establishment of wind and solar power facilities on aquatic bodies, certain water bodies are nevertheless excluded from the legislation. Particularly, maritime areas covered by the Coastal Law and lakes used as drinking water sources will be explicitly excluded from this possibility. Apart from these exclusions, water bodies or specific zones of a water body will be determined as renewable energy source zones by the Ministry of Energy and Natural Resources and be opened to these investments.
While the amendments are yet to be voted on by the General Assembly, the omnibus is expected to pass without significant amendments and will take effect as soon as it is adopted and published in the Official Gazette. As the Grand National Assembly prepares to vote on the bill, it is imperative for legal professionals in the area to closely monitor these developments. The new legislation not only represents a significant opportunity for the growth of renewable energy in the country but also poses a range of legal challenges and opportunities. The interplay between environmental sustainability, energy security, and legal frameworks will be critical in shaping the future of renewable energy and the practice of energy law in Turkiye.
By Zahide Altunbas Sancak, Partner, and Aziz Can Cengiz, Associate, Guleryuz Partners
This article was originally published in Issue 11.3 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
