NEWSLETTER-2017

283 ENERGY LAW facility could generate uninterrupted power through technological enhancements, license applications for such generation facilities shall be excluded from the requirement of maximum installed capacity of 1 MW. EMRA’s Discretion in Cancelling Connection Agreements Previously it was governed that the completion terms of the pro- visional approval process for generation facilities to connect to the network starts from the execution date of connection agreement. In the event of non-completion of such facilities due to any reason other than force majeure events, the connection agreements and water utiliza- tion rights would become null. However, under the amended Article 24, EMRA is granted a wide discretional power to nullify connection agreements on the grounds of “other occasions deemed appropriate by EMRA” as quoted from amended text of the Article 24. Exemptions to Share Transfers Except for the share transfers as a result of inheritance, it was prohibited to transfer of shares of unlicensed generation facilities equal or below 1MW between the date of application and the date of provisional approval. With the amendment under Article 31 (20) this share transfer restriction shall not apply in the exceptional (per- mitted) cases of (i) changes in the shareholding structure of publicly listed legal entities due to their publicly listed shares and changes in the shareholding structure of legal entities which have publicly listed shareholders due to the publicly listed shares of such shareholder(s), (ii) direct or indirect changes in the shareholding structure of the re- lated legal entity due to exercise of pre-emptive rights of the existing shareholders of such legal entity and thus transfer of shares is facili- tated, (iii) indirect changes in the shareholding structure of the related legal entity as a result of the changes of the shareholding structure of their foreign (abroad-based) shareholders, (iv) direct or indirect change in the shareholding structure of the related legal entity due to the public offering of their shares or public offering of the shares of the legal entities who are direct or indirect shareholders of such pre- license holder entities.