Newsletter-21

305 ENERGY LAW itemizing such particular circumstances in the Article would be much more solution-oriented in order to avoid any uncertainty. Pre-license Process The pre-license process is regulated under Article No. 10 of the Draft. According to this Article, obtaining a pre-license is obligatory in order to conduct electricity generation activities in RERAs that are to be determined. In cases in which a domestic production condition must be fulfilled, the term of the pre-license cannot exceed 24 months except for force majeure events. During the pre-license granting period, subject to resource type and installed capacity, matters that concern the extension of the pre-license period up to 36 months are regulated by the Board’s decision. The license will be granted for at least 10 years, and at the most 49 years, depending on qualification of the activity. Within the concept of allocation in consideration of the utilization of domestic goods (“ACUD”), required approvals during pre-license procedures must be completed within 18 months. Pre-licenses of legal entities that have not fulfilled required studies and operations during the equipment production facilities pre-license period will be cancelled by the EMRA, and the guarantee letter will be recorded as revenue by the Ministry. The most important sanction of a breach of undertakings is that the relevant legal entity, and other legal entities which the shareholders of the mentioned entity are incorporated, are not allowed to participate in other competitions organized by the Ministry. License process Article No. 11 of the Draft regulates the license process. Accord- ing to this Article, utilization of domestic goods in the production area must be confirmed by the Ministry. Afterwards, confirmation by the pre-license holder will be considered that it has fulfilled all obligations under this regulation, and the EMRA will be so notified. In the case of a breach of a domestic goods utilization undertaking in the RERA, the relevant legal entity will be notified in writing. If the mentioned