Set Up a Company in the Energy Sector in Turkey
Set Up a Company in the Energy Sector in TurkeyUpdated on Saturday 15th December 2018
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The energy sector in Turkey is one of the most prolific industries in the economy. This is because the country’s geographical position allows companies operating in this industry to invest in renewable energy and steer away from the traditional gas and fuel-based sources. In order to encourage players on the market, the government has enabled the new Electricity Market Law with the purpose of liberalizing the market and welcoming private companies seeking to start business in the renewable energy industry.
Our law firm in Turkey can offer information on the energy industry in the country.
Legislation related to the Turkish energy industry
The current laws providing for the energy industry in Turkey are:
- - the Natural Gas Market Internal Installations Law;
- - the Law on Energy Efficiency;
- - the Electricity Market Eligible Consumer Law;
- - the Natural Gas Market Transmission Network Operation Law.
Based on the laws above, Turkish companies can establish the services they want to provide.
Registering a company in the Turkish energy sector
The first step to open a company in the energy industry in Turkey must register a business entity with the Trade Register. Only private limited liability and joint stock companies are allowed to operate in the energy sector in Turkey. Special attention must be paid to the share capital requirements when setting up a company in the energy industry. A lawyer in Turkey can offer information on the capital required to open a company in this economic sector.
Licenses for companies in the energy industry in Turkey
Once the company is registered, it must apply for one of the licenses covered by the Energy Market Law which are issued by the Energy Market Regulatory Authority in Turkey. These licenses are:
- - an energy generation license;
- - a transmission license;
- - a distribution license;
- - a market operation license;
- - an import/export license;
- - an energy supply license.
The energy supply license allows Turkish companies in the energy industry to carry out wholesale and retail energy services. These companies are also subject to a yearly license fee established by the authority.
For full information on the special licenses required to establish a company in the energy sector, please contact our Turkish lawyers.