The Turkish Energy Market Regulatory Authority (EMRA) has announced a Draft Regulation on Electricity Storage Activities, based on the Electricity Market Law.
Attorneys-at-law of CMS in Turkey explain the implications and the planned regulation’s contribution to advancing the country’s sustainable energy strategy.
Scope of the Draft Regulation
The Draft Regulation will set out the principles and procedures for establishing electricity storage facilities, connecting these facilities to transmission or distribution systems, and using these systems. It will also set out the principles and procedures for electricity storage and other activities that lie within the regulatory scope of mass electricity markets (“toptan elektrik piyasaları”) and grid transmission (“şebeke iletimi”).
Electricity storage is categorised as a “market activity” (“piyasa faaliyeti”) under the Draft Regulation and must therefore be carried out in compliance with the market rules. The storage activities covered by the Draft Regulation are as follows:
- Storage facilities integrated with generation
Legal entities that hold an electricity generation licence are authorised to build integrated storage facilities with a maximum of 20% of the installed power capacity of the electricity generation facility, as long as EMRA gives permission for the hydroelectric power stations (with pumped storage) (“pompaj depolamalı hidroelektrik santral”). The Energy Market Regulatory Board may decide to change this percentage.
- Storage facilities integrated with consumption
A subscriber may build a storage facility at the point of consumption, as long as the facility has a power capacity of at least 50 kW but doesn’t exceed the agreed power capacity on the subscription agreement.
- Autonomous storage facilities
An autonomous storage facility may carry out electrical activities within the scope of ancillary services, provided that it has an installed power capacity of at least 10 MW. An autonomous storage facility may carry out electrical activities within the scope of ancillary services and mass electricity markets, provided that it has an installed power capacity of at least 15 MW.
- Storage facilities established by grid operators (“şebeke işletmecileri”)
Grid operators may build energy storage facilities within the scope of transmission activities, provided that the power capacity of the main transformer does not exceed 50 MW. Such facilities may only be built if the connection to the feeders used by the legal entities who hold the electricity distribution licence does not exceed 10 MW.
Energy storage facilities may be built by grid operators within the scope of distribution activities provided the power capacity of the main distributor does not exceed 10 MW.
Universities and technology development zones (“teknoloji geliştirme bölgeleri”) are authorised to build integrated storage facilities with an installed power capacity of up to 500kW for the purpose of research and development (“ArGe”).
The Energy Market Regulatory Board is responsible for imposing the sanctions set forth under the Law on legal entities engaged in electricity storage activities that contravene the provisions of the Draft Regulation. Sanctions include administrative fines ranging from TRY 500,000 to TRY 1,000,000 and licence revocation.
The Draft Regulation is of great importance to the progress of Turkey’s sustainable energy strategy. Turkey aims to supply more than 80% of the country’s energy needs from renewable resources by introducing an effective storage strategy and supporting technical developments. Electricity storage facilities will not only contribute to energy security but will also increase energy efficiency.