RENEWABLE ENERGY LAW (47/2011)

Aim of the law

The aim of this law is to generalize renewable energy sources for electric production or for health purposes, gain these sources to economy in a reliable economic and quality way, increase of resource diversity, reduce greenhouse gas emission, protect the environment, develop required production sector for actualization of these aims, support sustainable energy production, reduce energy importation and provide security of supply.  

Scope of the Law

This law includes rules, protection of renewable energy source areas, certification of electricity and/or heat produced by renewable energy sources and implementations with procedures and principles in relation to support the usage of these sources.

Identification of Energy Resource Areas

To benefit from renewable energy sources or to provide and incentivize facilities, which may enable energy sources to be converted into electricity or heat, the Cabinet declares a region in TRNC as RES (Renewable Energy Sources) and publishes it on Official Gazette on proposal of the Ministry responsible of Energy.

No production permit is given to regions declared as RES without confirmation of the Ministry. In case of wastelands in RES area, they can be rented by investors to establish mentioned facilities as per No 53/189 “Wasteland (Land Tenure and Management) Law.”

In case of state lands in RES area, they can be rented by investors to establish mentioned energy facilities as per No 63/1993 “ State Land (Hire and Evaluation) Law”

Application and Evaluation of Producing Companies

Electricity production via renewable energy sources is based on the permit by the Ministry responsible of Energy. Therefore, the applications should be in written and as stated by the Ministry. Applications are supported by reports or evaluations related to place and way of procurement of equipments or software or equipments or software list designed for use in draft plans and projects prepared by authorized engineers and confirmed by Cyprus Turkish Electricity Administration.

Applications are submitted to the Ministry with a signed and official sealed certificate of receipt. All subject matter documents are exempted from all kinds of tax, duties, and charges. In any case, applications are determined in 6 months and the applicant or his proxy is notified in written with a good reason.

Companies, which their application is granted, are given a License as determined by the Ministry and it is valid for 25 as of the issue date. The License is free of charge. Companies which complete infrastructure requirement related to energy production are given a RES /Renewable Energy Source) License. This license is classified in terms of power to be produced.

If electrical conduction or distribution network is not connected at least in one year as of the License with no valid reason, the necessary infrastructure is suspended until it is completed and RES Certificate is not given for subject matter activity.

Incentives

Incentives are met by an item formed every year under the budget of Ministry responsible for Energy. For this reason, the following incentive matters are applied:

   ● Whole or partial financing of facility investment;

   ● Guarantee of purchase by netting;

   ● Guarantee of purchase;

   ● And;

        ● Registration of to-be-proposed projects are exempted from all kinds of tax, duties, and charges;

        ● The entrance of instruments, equipments, materials and products imported abroad to TRNC on use of energy                 production system and their activation purposes are exempted from all kinds of funds, tax, duties and charges;

        ● The Cabinet is responsible to enable necessary considered measures and deemed appropriate incentives by the             proposal of relevant Ministry to enable the use of above stated instruments, equipments, materials and products             produced in TRNC;

        ● Investment Period, which is the period to benefit from incentives, will involve first 5 years including all                       preparations. However, the period to benefit from incentives can be increased to 7 years or reduced to 3 years by           taking investment charges and monthly production capacity into consideration.

Cancellation of use of a Right

RES Certificates of Companies, which do not fulfill or violate obligations forecasted in relevant legislation related to License and/or RES Certificate given by the Ministry, are withdrawn by the Ministry and all instruments for energy production are seized in order to meet all accrued expenses and penalties. 

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