EPDK Revamps Electricity Market Rules, Enhances Stability and Deposits
The Energy Market Regulatory Authority (EPDK) has implemented comprehensive changes across five key regulations directly impacting Turkey’s electricity market. These new decisions, published and effective in the Official Gazette, redefine critical aspects ranging from the technical installation criteria for electricity storage facilities and remote control of unlicensed power plants to the processes for refunding user security deposits and grid connection rules, aiming for enhanced market stability and user flexibility.
- EPDK introduced significant amendments to five electricity market regulations, impacting various operational and financial aspects.
- Security deposit procedures for distribution system users are now more flexible, allowing digital submissions and guaranteeing refunds for excess amounts within 10 business days.
- New technical rules mandate automatic power control and energy cut-off systems for electricity storage units exceeding contract power to maintain grid stability.
- Unlicensed electricity generation facilities are now subject to remote control by grid operators during emergencies to ensure system balancing.
Security Deposit Returns Are Accelerated for Users
The new regulatory package introduces a more flexible and faster system for distribution system users’ security deposit obligations. Users can now submit cash deposits, as well as definite and indefinite bank guarantee letters, electronically. Any security amounts exceeding the legal requirement held by distribution companies must be refunded within 10 business days upon the user’s official request. Similarly, users are granted 10 business days to complete any additional amounts required when a deposit increase is necessary.
A significant advantage is also being introduced for subscribers who maintain financial discipline. Users who have paid their system usage bills without interruption for the past 24 months and have not defaulted will have their deposit coefficient capped at a maximum of one-fold. Any excess deposits resulting from this calculation must be returned to the rightful owners within one month from the effective date of the regulation. Conversely, users with a deposit shortfall of 20 percent or more, who fail to address this deficiency, will be directly reported to EPDK.
Electricity Storage Facilities Must Implement New Technical Controls
Aiming to preserve grid stability, EPDK is introducing new rules for the technical infrastructure of electricity storage units. Consumers can invest in storage facilities provided they receive a positive connection opinion from the grid operator and position the facility at the same metering point. However, for storage facilities exceeding the contract power in the connection agreement, two critical safety mechanisms are now mandatory: an automatic power control system and an energy cut-off system. These systems instantly prevent uncontrolled energy drawing from the grid or excessive energy feeding into the grid beyond the agreed power.
Storage-Based Generation Licenses Will Focus on Installed Power
A significant methodological change has been made in the license evaluation processes for storage-based electricity generation facilities. Now, in license applications, the installed power (MW) of the storage unit will be the primary criterion examined, rather than its storage capacity (MWh). Deposits for these projects will not be released until the entire power plant becomes commercially operational; for partial refunds, only the electrical power of the accepted unit is taken into account.
Unlicensed Generation Plants Can Now Be Remotely Controlled in Emergencies
Unlicensed electricity generation facilities, whose numbers are rapidly increasing with the renewable energy transition, are now being integrated into the grid operators’ emergency management framework. Distribution companies and certain organized industrial zones will have the authority to remotely control these facilities to implement emergency instructions issued within the scope of the Balancing Power Market.
Once an emergency situation concludes, the system operator must notify the facility owner within 15 minutes; the re-commissioning of the facility and its return to feeding energy into the system remains the responsibility of the facility owner. Producers who fail to comply with the emergency instructions will not receive any payment for the energy they produced in violation of the rules, and these costs will be collected through aggregators or supply companies. Producers covered by these regulations must apply to revise their connection agreements within 60 days, while the implementation of certain penalty clauses in contracts is postponed until April 30, 2027.
What are your thoughts on EPDK’s latest regulations for the electricity market? Do you believe these changes will enhance grid stability and benefit consumers and producers? Share your insights and perspectives in the comments below.
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