Unlicensed Electricity Generation Investor Experiences In-Game Rule Change

Unlicensed Electricity Generation Investor Experiences Rule Change in the Game
Unlicensed Electricity Generation Investor Experiences In-Game Rule Change

The regulation change decision, published by the Energy Market Regulatory Authority (EMRA) in the Official Gazette dated August 11, 2022, is at the center of the discussions in the Renewable and Clean Energy sector.

Within the scope of the decision, many items such as providing the opportunity to set off the energy produced by unlicensed electricity production investment at any point in Turkey with the consumption of the investor company, and the possibility of non-OSB investment were very positive; some provisions included all unlicensed investments that received a call letter on and after 12 May 2019. caused an uproar in the industry.

“INFORMATION WAS NOT GIVEN TO THE SECTOR, THE OPINIONS RECEIVED WERE NOT EVALUATED”

Alper Kalaycı, Chairman of the Board of Directors of the Energy Industrialists and Businessmen Association (ENSİA), who made evaluations about the decision, stated that they were faced with a midnight arrangement again, and said, “The investment was prepared without the knowledge and opinion of the sector, and a serious loan and interest burden for this investment. We think that such practices, which mean 'changing the rules for the game', are extremely disturbing for investors who are under the influence. In fact, just because of one article, we are forced to discuss other aspects of a regulation that we will applaud and blow up the entire unlicensed sector. " said.
Emphasizing that the retrospective operation of the administrative decisions taken in the public administration brings many injustices, Kalaycı stated that the positive changes made with the regulation, therefore, remain in the background.

“There is NO GUARANTEE THAT ANOTHER DECISION WILL NOT BE MADE AFTER THREE YEARS AFTER THIS DECISION”

Pointing out that if a retrospective decision is implemented for a reason unknown to the industry, this situation should be explained to the industry in a clear and transparent manner with its justifications and all risks should be evaluated, and made the following assessment:

“Every retrospective application has always caused trouble. These days, when we need energy, especially clean energy, we should not confuse the industry so much. It is a very positive development that, in the change in the regulation, which is the subject of the EMRA decision, a company can go to offset with the SPP investment it has built at any point in Turkey, away from the consumption point. On the other hand, it is not acceptable for the investor to have to give energy, which is excess consumption, free of charge. Approximately 2022 Megawatts of the 8 Megawatt SPP installed power reached in our country as of the end of July 700 consists of the power plants that have been commissioned in the last three years. While Turkey has achieved such a magnificent momentum in the sun, which is an unlimited source of energy, it is not acceptable to set a barrier in front of people who invest in this field and take risks. It's like squeezing a bird in our own foot. Three years from now, no one can guarantee that a decision taken and implemented today will not change with a decision taken at midnight. The loss of confidence will affect the decision-making stages of all domestic and foreign investors. The retrospective practice should be abandoned as soon as possible and a guarantee should be given that a similar situation will not happen again.”

“THE PUBLIC AND INVESTORS SHOULD NOT EXPERIENCE A CONFIDENCE”

Alper Kalaycı, who pointed out that EMRA tried to clarify the issue with the press statement made on the same day after the reaction and confusion in the sector, said in this statement to the investors who do not want to give the excess energy to the public for free: He would have preferred to let a national resource be wasted.” He noted that the sentence has a content that needs explanation and they want all kinds of attempts to create a crisis of confidence between the public authority and the investors should be avoided.

Alper Kalaycı, who added that in case of such stubbornness, there will be great decreases in the momentum of new investments and that the country will almost turn into a solar panel dump, continued his words as follows:

“IS THE INVISIBLE HAND AGAIN”

“As ENSİA, we have made the evaluation of 'An invisible hand is preventing SPP investments' many times in the statements we made to the public in the past years. We now see how accurate this analogy is. Industrialist, hotel owner, factory owner, site resident, apartment dweller or any citizen… If he has the will and financial power to produce his own electricity, let him produce it. However, while doing this, we need to establish a system that does not tire people, welcomes them at a single point and can complete all processes at the same point. However, while establishing this system, it is important that we stay away from attitudes that create a crisis of confidence by making decisions that go backwards and cancel the decision taken today tomorrow. Therefore, the citizen and the willing state must be positioned consistently at the point that paves the way for investments. Especially with a correct regulation infrastructure, bilateral agreements should be completely paved. It is important that we present an investment model to small-scale investors. In this case, no one will set out so that I can consume 1 and sell 10.

Since 2014, Turkey has become the 9th country in the world with the highest increase in its installed power, and the 3rd country in Europe. But we still have a long way to go. Germany, which is the envy of the whole world in solar energy today, is a country that receives less sun than Turkey. The fact that Germany, which receives 600 percent less sun than Turkey with an annual sunshine duration of 60 hours, produces 60 thousand Megawatts of solar energy, that is 7 times more than us, should make us all think. Our public authorities should not forget that each kilowatt of energy we will produce with our domestic resources means that we keep the foreign currency in our pocket.”

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