License and Permit Procedures for Establishing a Business in Türkiye

To start operations in Türkiye’s energy sector, companies must obtain a license or permit issued by the Energy Market Regulatory Authority (EPDK). The standard application process is usually completed within three to six months, depending on the type of activity and documentation provided.

Application Process and Key Steps

The licensing procedure consists of four main stages:

1. Preparing the required documentation: each activity type requires specific documents
2. Payment of the application fee: the fee is deposited into EPDK’s official account
3. Submission of documentation: either electronically or in printed form
4. Review and approval: EPDK evaluates the application and communicates the result

Application Methods

Electronic applications: Most procedures are completed through the EPDK Application System. Legal entities need to authorize a representative through an official authorization document before gaining system access.

Written applications: Activities related to transmission, distribution, and nuclear energy projects must apply in hard copy format.

Foreign investors are allowed to appoint an authorized representative or proxy to submit applications. The authorization should cover system access, withdrawal of the application, and modification processes.

Types of Licenses and Requirements by Activity

Electricity Market

There are three main license categories in Türkiye’s electricity market:

• generation license: required for establishing electricity production facilities
• transmission license: required for transporting electricity
• distribution license: required for delivering electricity to end consumers

For renewable energy-based projects, investors must first obtain a pre-license. The pre-license period cannot exceed 36 months, during which investors must secure all permits, consents, and construction approvals as required. Once the obligations are met, investors can apply for a generation license. EPDK finalizes the evaluation within 45 days.

License validity: Electricity production licenses are issued for a minimum of 10 years and up to 49 years. For renewable energy sources such as wind and solar, the license term is 49 years.

License fees (2024):

• pre-license and generation license fees: between 51,030 and 2,477,840 Turkish liras depending on capacity
• renewal fee: 50% of the initial license fee
• for domestic or renewable energy resources: 10% of the standard fee
• annual license fee: 0.015 kuruş per kilowatt-hour of gross generation

Natural Gas Market

Main types of natural gas licenses include import, export, storage, transmission, wholesale, compressed natural gas (CNG), and distribution licenses.

License fees (2024):

• import activity: 1,228,850 liras
• pipeline transmission: 9,207,960 liras
• LNG transmission: 446,530 liras

Petroleum and LPG Markets

In the petroleum market, storage, transportation, and refinery activities are subject to licensing. In the LPG market, licenses are required for all steps from filling facilities to retail stations.

Wholesale delivery license fee (2024): 185,010 liras

Key Considerations for International Entrepreneurs

• company establishment: investors must establish a company in accordance with the Turkish Commercial Code if they plan to operate a production facility
• electronic application system: access can be provided through an officially appointed representative who is granted authorization within five business days
• connection coordination: connection points and capacities are published by the Turkish Electricity Transmission Corporation (TEİAŞ); applications must align with the published grid capacity and EPDK’s announced application window
• required documentation: company articles of association, shareholder structure, control declaration, proof of capital, and payment receipt of the license fee
• construction timeline: within the license period, the project’s construction and commissioning must be completed as specified in the license terms

By ensuring compliance with EPDK’s current regulations and timelines, foreign investors can effectively establish and operate energy businesses in Türkiye. Combining local legal expertise and early planning significantly increases the chances of a timely and successful licensing process.