NEWSLETTER-2017

285 ENERGY LAW Legal entities that have fulfilled the criteria determined and an- nounced by the Ministry are authorized to participate in the tenders for the assignment of connection capacity of a RERA. The tender shall be held as reverse auction starting from the maximum electricity purchase price set by the Ministry for kilowatt-hour per each RERA. Tender shall be awarded to a participant offering the lowest price. The entities awarded the tender shall then be invited to sign the right of use agreement. Pre-license is an obligation for the investors to engage in electric- ity generation activities in RERAs. The term of the pre-license shall not exceed 24 months except for force majeure events. However li- censes shall be granted for a maximum term of 30 years. The generated electricity shall be sold during the term specified in the tender specifications over the price determined in the right to use agreement and shall be subject to Regulation on Certification and Support of Renewable Energy Resources (“YEKDEM Regulation”). The term for purchase of electricity mentioned in the tender specifica- tions shall commence upon the execution of the right to use agreement. No additional incentives under Law on the Use of Renewable Energy Resources for Electricity Generation (No. 5346) shall be applicable to the electricity generation facilities constructed within the scope of right to use agreement.