Newsletter-21

313 ENERGY LAW the event that the force majeure events continue more than one year, or it is understood that its effects would not cease within one year, the General Directorate is entitled to terminate the RERA Right of Use Agreement through the documentation to be serviced by the competent authorities regarding the current situation. In such event, the guarantee letter will be returned to the legal entity; however, the related legal entity is not granted the right to demand to be compensated under any title, such as harm, loss, and etc. Protection and Usage of RERAs Finally, Articles 18 and 19 of the Regulation bring regulations as to the protection of RERAs and development of infrastructure invest- ments in these areas. The Regulation entered into force on October 9th, 2016 on the same date as its publication in the Official Gazette. Conclusion Another expectation of the investors, according to the Regulation, is that the definitions concerning local products, equipment technol- ogy criteria in the tender specifications, determination and supervision of local products must be explanatory and clear. When the subject Regulation is reviewed within the aspect of competitive market conditions, in the event that the tenders are al- located between various several large-scaled companies, it brings the concerns of the monopolization of the market, as well as the failure to ensure competitive market standards. According to another view, in order to increase the rates of realization of the projects, the projects should be allocated between several large-scaled investors that meet some specific criteria. Intensifying the Regulation with a mechanism supporting the competitive market conditions can whet investors’ ap- petites to invest in such projects. The lack of criteria on the distribution of licenses, such as capacity and scale, draws attention as one of the deficiencies of this Regulation. Despite the insurance of this structure, it would make a positive impact on competitive market conditions to allocate some small-scaled pro- jects to investors that have lower potential as to electricity generation.