Energy Sector in Turkey
Turkey has recently established itself as one of the top countries in the energy sector, attracting a large number of investors. Traders who wish to open a business in Turkey can do so under the same terms as local investors. When starting a business in Turkey in the energy industry, there are several unique requirements that must be met that are not required in other industries.
Establishing a Company in the Energy Sector in Turkey
In the last several years, Turkey has gained a rapid increase in the economy, furthermore, we can also say that the increased use of energy resources can be one of the reasons for this success. The energy industry around the world has developed fast, therefore it has encouraged Turkey to start using its geographical location to generate the maximum renewable energy possible. As a result, we can say that setting up a company in the energy sector in Turkey is a great investment.
The government has also started Electricity Market Law some years back to allow businesses to invest in the Turkish energy industry. It works with other laws and covers the maximum portion of the energy sector in Turkey. If you are looking forward to setting up a company in the energy sector in Turkey, you can take the help of a business consultant in Turkey to make the process easier and stress-free.
Turkey’s energy industry is one of the most prosperous in the country’s economy. This is due to the country’s geographic location, which allows businesses in this field to invest in renewable energy rather than relying on traditional gas and fuel sources. The government has approved the new Electricity Market Law intending to liberalize the market and invite private corporations wanting to launch a company in Turkey’s renewable energy industry, therefore attracting investors to the market.
If we were to talk about the energy sector in Turkey, it’s quite impressive that both medium and large-sized businesses are offering various kinds of services. You can set up a company in the energy sector in Turkey by making the business registration with the Trade Register. You can obtain the operation license this way.
The foreign investors are also trying their chance in the energy sector in Turkey by opening various companies related to electricity, gas, steam, and A/C supply. Foreign investors need to fulfill several legal requirements to become part of the energy sector in Turkey.
Activities to be Undertaken in The Energy Sector in Turkey
Getting the encouragement to start a company in the energy market in Turkey has opened various investment opportunities for both local and foreign investors looking to become a part of the country’s economy. Furthermore, the Turkish government has also enabled various laws that encourage business owners to set up companies in the renewable energy industry in Turkey.
Types of activities relevant to the energy sector controlled by the Turkish laws include the production and distribution of energy by using several renewable energy sources, production and distribution of natural gas, as well as import and distribution of the natural gas.
Whether a local or foreign investor, when you register a company in the energy market in Turkey, these types of activities are allowed to the limited and public companies only. You can consult the Turkish company formation agents that can guide you throughout the process and let you know the actual requirements for setting up these types of business activities in Turkey.
How to Register a Company in The Energy Sector in Turkey?
Several steps are involved in opening a company in the energy sector in Turkey. The first and primary step is to register a business entity with the Turkish Trade Register. As mentioned before, only private limited and Joint-Stock Companies have permission to operate in the Turkish energy market. A company besides these isn’t allowed to be part of the Turkish energy market.
Here is a link that might interest you; “Open a Joint Stock Company in Turkey.”
It’s also recommended to pay attention to the share capital requirements when establishing a company in the Turkish energy market. In this regard, it’s advised to consult an attorney in Turkey who can provide you all the essential information about the capital needed to set up a company in the energy sector in Turkey.
List of Licenses Required For Companies in The Energy Sector in Turkey
Once you register your company, you must apply for one of the licenses covered under the Energy Market Law. This list of licenses is allotted by the Energy Market Regulatory Authority in Turkey. Each company in the energy sector in Turkey must respect the regulations by the Energy market Law.
Have a look at these licenses and get the one based on your business operations in Turkey:
- Energy Generation License,
- Transmission License,
- Distribution License,
- Market Operation License,
- Import/Export License,
- Energy Supply License,
If we were to talk about an energy supply license, it allows your company to deal with wholesale and retail energy services. Such companies need to deposit annual license fees set up by the authority. Again, it’s recommended to consult an expert to get detailed information about the documents required to get these licenses. The expert can also help you with the formation procedure of the energy company in Turkey.
Why is Energy Transition Required in Turkey?
There is no doubt that the main priority of Turkey is to secure the energy supply and use it for the economic growth of the country as well as to keep the demand of the increasing population. It doesn’t end here. Apart from meeting the increased demand for energy in Turkey, the country is also working on shaping the energy transition, so that they can use the energy for the right sources.
Turkey’s economic priorities include the reduction of adverse environmental and economic effects due to the increased use of fossil fuels. Those fuels result in turning the energy market more competitive, thus, giving customers several energy choices.
The Turkish government also pays inducements for making investments in renewable energy technology. This not only works effectively in strengthening energy security but bargaining activity with suppliers which also helps in reducing the current accounts deficit as well. This is also a big step towards creating economic jobs and results in the reduction of carbon emissions and great improvement in the environment.
Current and Future Opportunities in The Energy Sector in Turkey
Whether we talk about economic, environmental, or health factors, when together; they pose potential benefits for an energy transition. It will help you understand the current and future strategies and action plans of Turkey. Some of these action plans have a target date of 2023.
The planning process can gain great benefits as a result of the extended timeline. The country also has time to learn lessons from other countries. You must be aware of these points, which can help you make an informed decision if you plan to be an investor in the energy sector in Turkey.
- Turkey is a dependent country for importing natural gas,
- The policies and legislation of renewable energy in Turkey are in agreement with EU countries’ practices,
- The Turkish government must check and ensure energy infrastructure security as per the geographical location of the country,
- The licensing procedure has strict requirements. Those may result in discouraging investors invest their money in large-scale companies in Turkey,
If you are interested in the Turkish energy market, you are advised to get detailed information about each aspect of your project before investing in Turkey.