Wed, Apr
37 New Articles

Electricity Market – Scope of Capacity Mechanism and YEK-G Transition Period

Electricity Market – Scope of Capacity Mechanism and YEK-G Transition Period

  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The Regulation Amending the Electricity Market Capacity Mechanism Regulation and the Regulation Amending the Regulation on Renewable Energy Source Guarantee Certificate in Electricity Market published in the Official Gazette on 21 May 2021, introduced significant changes to the capacity mechanism and renewable energy resource guarantee certificate (“YEK-G“) applications.

What changes have been introduced?

1. The definition of facilities that can benefit from the capacity mechanism has been changed.

(i) Build-operate projects and (ii) power plants that are existing and in operation in accordance with their licenses, whose temporary acceptance date is more than 13 years (calculated starting from the provisional acceptance date of their oldest unit) and that are not based on domestic resources, both of which were previously not included in the capacity mechanism, can participate in the capacity mechanism.

Licensed legal entities with these facilities that want to participate in the 2021 capacity mechanism should apply to the system operator within 15 days from 21 May 2021.

2. YEK-G system transition provisions have been regulated.

(i) Issuance transactions for the period of 1 March 2021 to 31 May 2021

YEK-G system users can request the issuance of YEK-G certificate from the market operator (EPİAŞ) after the market operator notifies the certified generation amount for this period.

(ii) Redemption transactions for the period of 1 January 2021 to 31 May 2021

YEK-G certificates to be redeemed due to the consumption of consumers within this period will be subject to redemption notification of suppliers as of the date of the May 2021 final settlement notice within the scope of balancing and settlement regulation.


With the changes regarding the inclusion of build-operate projects in the capacity mechanism, some build-operate projects are expected to be reactivated. Regarding the YEK-G system, necessary provisions regarding the transition period were regulated.

Nigar Gokmen, Head of Energy, Mining, and Infrastructure, and Tugay Hanegelioglu, Associate, Esin Attorney Partnership

Baker McKenzie at a Glance

Baker McKenzie brings insight and foresight to clients across more than 70 global offices. Our team of 13,000 people, including over 6,500 lawyers, works alongside our clients to drive growth that is both sustainable – and inclusive. The global business community is more interconnected than ever before. Opportunities and risks spill across different markets, sectors and areas of law, so a connected perspective is essential in delivering business objectives while mitigating risk. Our integrated client solutions provide seamless advice, underpinned by deep practice and sector expertise, as well as first-rate local market knowledge.

In the Central and Eastern European (CEE) region, Baker McKenzie's expansion remains steadfast, with a thriving team of over legal professionals. Our footprint extends across six offices in Austria, the Czech Republic, Hungary, Poland, Türkiye, and Ukraine. As part of our global network, coupled with well-established partnerships throughout the entire CEE landscape, we proudly stand as one of the foremost international law firms in this dynamic territory. Our reputation as a premier business law firm in CEE is a testament to our extensive experience in advising on a multitude of prestigious projects and nurturing enduring client relationships.

Firm's website.