Application Deadline for Domestic Component* Additional Price is Extended
The Law on Renewable Energy Support provides additional tariffs for the investors that use domestically manufactured mechanical and/or electro-mechanical components in renewable energy facilities for a period of five years. According to the Schedule I and Schedule II (domestic contribution additional price) of the Renewable Energy Act, these additional tariffs vary according to the type of energy and the type of component. The incentive for the domestically manufactured components presented in Schedule II ranges from USD 0.4 to USD 2.4 per kWh, which depends on the type of plant and component. In case the license holders that are in the scope of the Law on Renewable Energy Support produce electricity with domestically manufactured components, the prices in Schedule II shall be added to the prices presented under the Schedule I for the electricity energy generated through these plants for a period of five years from the commercial operation date of the electricity generation facility.
According to the regulation published on December 10, 2020, the regulation on Supporting Domestic Components Used in Electricity Generation Facilities from Renewable Energy Sources dated 24/06/2016 and numbered 29752 has been amended with regards to the deadlines in the application process. Accordingly, the application period, which is for to benefit of the domestic contribution additional price in 2021 to support domestic components in renewable energy production, was extended until December 21,2020 while the previous deadline was set at October 16, 2020.
As a result of the examination conducted by the Ministry or the institution appointed by the Ministry, the additional price of the domestic contribution determined by the application will be notified to the Energy Market Regulatory Authority (EMRA) by December 28, 2020.
If the facilities achieve commercial operation unit by unit, then the necessary documents for the new units that start commercial operation after December 21,2020 will be submitted by the applicants to the Ministry and/or the institution appointed by the Ministry by August 1, 2021. If the application is not made by the due date, the facilities in question will not benefit from the domestic contribution additional price. The amendment of the regulation also provides application dates for facilities that enter into operation before June 30, 2021 and accordingly, the necessary documents for applications for these facilities will be submitted to the Ministry or the institution appointed by the Ministry until August 1, 2021. The domestic contribution additional price determined as a result of the review by the Ministry and/or the institution appointed by the Ministry will be notified to the EMRA and the applicant by October 31, 2021.
The timeline in summary is stated below:
In order to benefit from the domestic contribution additional price in 2021
• Submission of applications until December 21,2020,
• In case the Ministry or the institution appointed by the Ministry determines missing or incorrect documents in the application file, a list of these documents to be provided to the applicant until December 23, 2020,
• The applicant shall submit the corrected and/or missing documents until December 25, 2020,
• The additional price of domestic contribution shall be notified to the EMRA and the applicant December 28, 2020.
In order to benefit from the domestic contribution additional price for the facilities that have units which enter into operation through partial admissions after December 21,2020
• Submission of applications until August 1, 2021.
In order to benefit from the domestic contribution additional price for facilities that enter into operation before June 30, 2021
• Submission of applications until August 1 of the relevant year,
• In case the Ministry or the institution appointed by the Ministry determines missing or incorrect documents in the application file, a list of these documents to be provided to the applicant until September 15, 2021,
• The applicant shall submit the corrected and/or missing documents until September 30, 2021,
• The additional price of domestic contribution shall be notified to the EMRA and the applicant October 31, 2021.
*It is worth noting that domestic components are defined as domestically manufactured materials which constitute at least 55% of the components utilized in electricity generation.