A. Introduction

This article introduces Turkey's Law on Utilization of Renewable Energy Sources for the Purpose of Generating Electrical Energy (hereinafter "Law") which, almost unnoticed abroad, was adopted on 18 May 2005. It provides an overview of the general provisions of the Law, as well as other supporting legislation regarding renewable energy sources ("RES"). However, the legislation on bio-fuel will not be taken into account.

The Law is a typical sample of the adaptation process that Turkey is undergoing as part of its EU membership bid. According to the European Council decision of 23 January 2006 on the principles, priorities and conditions contained in the accession partnership with Turkey, one of the short-term priorities identified for Turkey namely relates to "[s]tart alignment on the acquis on energy efficiency and renewable energy sources and develop administrative capacity in these sectors". In June 2006, as part of the accession negotiations, Turkey has provided a presentation on RES to the European Commission ("Commission"). The Commission's examination ("screening") report has not yet been published. Therefore, this article also will analyze Turkey's ability to assume the obligations of membership and its administrative capacity to implement the acquis in the field of RES.

RES is not a brand-new topic in Turkey, as both the Electricity Market Law ("EML"), which was enacted in March 2001, and the Electricity Market License Regulation ("Regulation") demonstrate. According to the EML, the Energy Market Regulatory Authority ("EMRA") is authorized to take the necessary measures to encourage the utilization of RES. Financial incentives for RES are specified in the Regulation. Legal entities applying to obtain a license for generation of electricity based on RES are required to pay merely 1% of the total licensing fee and are exempted from annual license fees for the first eight years following the facility completion date as inserted in the respective licenses. Moreover, the Regulation stipulates that legal entities, which generate electricity...