Newsletter-21

311 ENERGY LAW Pre-license Process The pre-license process is regulated under Article 12 of the Regu- lation. According to thisArticle, obtaining a pre-license and generation license is obligatory in order to conduct electricity generation activities in the announced RERAs. The legal entity that signed the Right of Use Agreement should complete a pre-license application within 45 days as of the signature date. Otherwise, the Right of Use Agreement will be terminated and the guarantee letter will be recorded as revenue. The pre-license period is determined in the Tender Specifications. Within the pre-license period, all required tasks must be achieved, and all required permits must be obtained within the context of the Electric- ity Market License Regulation and, respectively, a license application must be submitted. Within the context of ‘allocation in consideration of domestic production’ (“ACDP”) and ‘allocation in consideration of the utili- zation of domestic goods’ (“ACUD”), there are certain liabilities for pre-license holder legal entities. The construction deadline of the fa- cility, to be utilized in the electricity generation within the scopes of the ACDP and ACUD, in which the equipment is to be manufactured (“Factory”) as it is described in the Tender Specification, shall be determined in the Tender Specification. Sanctions such as the termina- tion of the Right of Use Agreement for RERAs are regulated in Article 12 of the Regulation upon the occurrence of any delay in Factory’s construction work plan. Additionally, pursuant to the same Article, in the event of any failure in the fulfillment of the undertakings stipu- lated under the Right of Use Agreement for RERAs, the relevant legal entity, and other legal entities whose shareholders are the shareholder of such entities, are not allowed to participate in other competitions organized by the Ministry for 2 years. Within the scope of the ACUD, in the event that completion of the Factory construction is made on time, 25% of the guarantee amount will be returned. License Process Pre-license holder legal entities that have fulfilled their obliga- tions under the Electricity Market License Regulation, and which have completed the construction of Factory, will apply to the Energy