Introduction

Notwithstanding the focus on 'small-scale generation' within the Regulation on Unlicensed Generation in the Electricity Market ('Unlicensed Regulation')[1], a substantial number of licence-exempt electricity generation facilities have been commissioned over the past three years that exceed small-scale parameters. The proliferation of such renewable energy-based generation facilities has begun to present challenges regarding their grid integration and system stability.[2]

In response to the growing number and aggregate generation capacity of licence-exempt electricity generation facilities, the Electricity Market Regulatory Authority ('EMRA') issued several draft amendments to various electricity grid regulations for public consultation.[3] These regulatory modifications entered into force following their publication in Official Gazette No. 32789 dated 21 January 2025. Upon examination of the amendments to the Electricity Market Ancillary Services Regulation ('Ancillary Services Regulation')[4], the Electricity Grid Regulation ('Grid Regulation')[5], and the Electricity Market Balancing and Settlement Regulation ('Balancing and Settlement Regulation')[6], it becomes apparent that multiple obligations have been imposed upon owners of licence-exempt electricity generation facilities connected at transmission level.

This briefing examines the principal obligations applicable to licence-exempt electricity generation facilities introduced by these regulatory amendments.

Reactive Power Control Service

A key amendment to the Ancillary Services Regulation concerns the addition to Article 39, which mandates that owners of licence-exempt electricity generation facilities (i) connected at transmission level at 66 kV or above and (ii) possessing an installed capacity exceeding 30 MW must enter into a reactive power control agreement with TEİAŞ. The amended Article 39 of the Ancillary Services Regulation provides that wind and solar energy facilities shall participate in reactive power control services subject to the conditions set forth in the Grid Regulation. Correspondingly, the amendment to Article 109 of the Grid Regulation stipulates that licence-exempt wind and solar energy facilities meeting the aforementioned technical criteria are required toparticipate in reactive power control for power factor values falling within the parameters specified in Annex 18 to the Regulation.

Pursuant to these amendments, licence-exempt electricity generation facilities satisfying the above-mentioned technical thresholds are required to execute a reactive power control agreement and participate in reactive power control services. Such ancillary service agreements governing the provision of reactive power control will specify the penalties applicable to generation facility owners in the event of: (i) failure to provide reactive power control or synchronous compensation services; (ii) non-compliance with data submission obligations relating to the service; and (iii) failure to submit reactive power control test reports to TEİAŞ within the prescribed timeframe.

The reactive power control service obligation applies both to newly commissioned licence-exempt electricity generation facilities and to existing installations. Pursuant to Provisional Article 10 added to the Ancillary Services Regulation, electricity generation facilities that have undergone provisional acceptance as at the effective date of the provision must submit their reactive power test certificates to TEİAŞ within 180 days from that date.

Emergency Precautions

Article 63 of the Grid Regulation provides that emergency measures shall be implemented by TEİAŞ and system users in the event of critical[7] or unstable[8] system conditions as defined therein. Emergency measures applicable to generation facilities are governed by Article 65 of the Grid Regulation. Under this provision, the National Load Dispatch Centre (MYTM) and/or Regional Load Dispatch Centre (BYTM) may issue notifications to legal entities and/or other users conducting generation activities in order to safeguard system operational security during emergency situations. A generation facility need not constitute a balancing unit for MYTM or BYTM to issue such emergency notifications. Pursuant to Article 75 of the Balancing and Settlement Regulation, emergency notifications follow the same framework as load-taking and load-shedding instructions within the balancing power market. System users are obligated to comply with emergency notifications. Where system users are unable to comply with an emergency notification, they must immediately notify MYTM or BYTM, as applicable.

The amendment to the Grid Regulation brings licence-exempt electricity generation facilities connected at transmission level within the scope of the emergency measures governed by Article 63 of the Grid Regulation. Correspondingly, the addition to Article 75(2) of the Balancing and Settlement Regulation provides that owners of licence-exempt electricity generation facilities connected to the transmission system may receive emergency instructions from TEİAŞ in respect of the relevant generation facilities.

It should be noted that licence-exempt electricity generation facilities are not included within Article 22(2) of the Balancing and Settlement Regulation, which defines balancing units. Consequently, whilst licence-exempt electricity generation facilities connected at transmission level are subject to emergency measures, they do not qualify as balancing units under the Balancing and Settlement Regulation.

Ongoing Notification Requirements

Pursuant to the amendments to the Balancing and Settlement Regulation, licence-exempt electricity generation facilities connected at transmission level are required to notify TEİAŞ of their finalised intraday generation plans (FIDP) and available capacities. In order to submit such notifications, the requisite authorisation process within the relevant systems shall be undertaken by the authorised supply company and/or aggregator within whose portfolio the facilities are situated.

Additionally, generation facilities connected at transmission level must designate at least one contact person who can be reached immediately in the event that market management system failure procedures are activated.

Accordingly, the amendments impose ongoing notification obligations upon licence-exempt electricity generation facilities connected at transmission level.

Conclusion

The amendments published in the Official Gazette on 21 January 2025 introduce multiple grid-level obligations for licence-exempt electricity generation facilities connected at transmission level. Notably, however, no corresponding amendments were made to the Unlicensed Regulation itself. These amendments warrant separate consideration in light of Article 32(4) of the Unlicensed Regulation, which prohibits the sale of electricity generated by facilities falling within the scope of the Unlicensed Regulation in organised wholesale markets. Cross-references to the new provisions of the Grid Regulation, Ancillary Services Regulation, and Balancing and Settlement Regulation would be appropriate.

In summary, these amendments establish a distinct category of licence-exempt electricity generation facilities. In contrast to other licence-exempt electricity generation facilities, this category is subject to various grid-related obligations. The obligations applicable to all facilities connected at transmission level comprise: (i) notification of FIDP and available capacity; and (ii) compliance with emergency measures. Furthermore, amongst licence-exempt generation facilities connected at transmission level, those with a connection voltage level of 66 kV or above and an installed capacity exceeding 30 MW shall be required to provide reactive power control services.

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[1] Published in the Official Gazette dated 12.05.2019 and numbered 30772.

[2] Indeed, the Energy Market Regulatory Authority (“EMRA”) drew attention to the increasing number of distributed generation power plants in its general rationale for the draft Regulation on Aggregation Activities in the Electricity Market. See: EMRA, https://www.epdk.gov.tr/Detay/Icerik/4-14428/elektrik-piyasasinda-toplayicilik-faaliyeti-yonet (Access Date: 09.01.2025); This regulation draft has been published in Official Gazette dated 17.12.2024 and numbered 32755.

[3] EMRA, https://www.epdk.gov.tr/Detay/Icerik/4-15652/mevzuat-taslaklarinin-goruse-acilmasi, (Access Date: 09.01.2025).

[4] Published in the Official Gazette dated 26.11.2017 and numbered 30252.

[5] Published in the Official Gazette dated 28.05.2014 and numbered 29013.

[6] Published in the Official Gazette dated 14.04.2009 and numbered 27200.

[7]  Critical operating conditions occur when the system frequency (f) is within the following parameters: 47,5Hz ≤ f < 49,5Hz ve 50,5Hz < f ≤ 51,5Hz. (Grid Regulation art. 63/1-c).

[8] Unstable operating conditions occur when the system frequency (f) is within the following parameters: : f < 47,5 Hz ve 52,5 Hz < f. (Grid Regulation art. 63/1-ç).