Create a Turkish Business on Electricity,Gas,Steam and A/C

Turkey has an impressive energy market which is made of both medium and large-sized players offering various services. It is possible to set up companies in the energy and connected sectors in Turkey by registering a business with the Trade Register and obtaining the necessary licenses for operating.

Foreign investors can also open companies in Turkey in the energy sector by registering businesses on electricity, gas, steam and air conditioning supply. In order to do that, one must comply with several legal requirements which are explained below by our company formation specialists in Turkey.

You can rely on us for assistance in opening a company on electricity, gas, steam and air conditioning supply in Turkey.

Legislation to respect when providing electricity, gas, steam and A/C services in Turkey

The main law which governs the energy market, and which extends to Turkish companies offering electricity, gas, steam and air conditioning supply services is the Electricity Market Law which was recently harmonized with the EU regulations.

All activities of Turkish companies in this sector are supervised by the Energy Market Regulatory Authority.

The other laws which need to be respected when opening a business on electricity, gas, steam and air conditioning supply in Turkey are:

• - the Natural Gas Market Law which covers aspects related to supplying gas and steam services;
• - the Law on Utilization of Renewable Energy Sources in Electricity Generation which governs the use of renewable energy sources;
• - the laws imposed on the protection of the environment govern the supply of air conditioning services;
• - all regulations and laws related to waste management must be respected when opening a company on electricity, gas, steam and air conditioning supply.

Our Turkish company formation agents can guide foreign entrepreneurs on the regulations they need to comply with when opening a business on electricity, gas, steam and air conditioning supply.

The main types of Turkish companies on electricity, gas and steam supply

There are several types of companies which can be set up with the purpose of offering electricity, gas, steam and air conditioning services in Turkey. The law recognized electricity generating companies, distribution companies and transmission companies.

In order to supply electricity, gas, steam and air conditioning in Turkey, one must register a distribution company for which a specific license must be obtained.

Licenses for companies on electricity, gas, steam and air conditioning supply in Turkey

In order to obtain a distribution or supply license for offering electricity, gas, steam and air conditioning in Turkey, a company must first obtain a preliminary license. The following aspects needs to be considered when setting up a business on electricity, gas, steam and air conditioning supply:

1. there are 21 distribution areas in Turkey and the company needs to obtain a license based on the region it will service;
2. a contract with a generating company must be signed when supplying such services in Turkey;
3. the license to be obtained by the company must be requested with the Energy Market Authority;
4. the company cannot engage in another activity than the one it was issued the license for, however, it can hold shares in another company completing other activities;
5. the company can offer wholesale and retail services when it comes to its clients in Turkey.

It is good to know that when it comes to the supply of air conditioning services, Turkish companies do not need to obtain such a license.

Our company registration advisors in Turkey can offer more information on the licenses required with setting up a business on electricity, gas, steam and air conditioning supply.

The main services offered by Turkish companies in the energy sector

There are several services which can be offered when starting a business on electricity, gas, steam and air conditioning supply in Turkey. Among these are:

• - the supply of electricity and gas alone;
• - the supply of all services mentioned above;
• - the supply of air conditioning services;
• - maintenance of electricity and gas lines;
• - maintenance of air conditioning apparels.

In numbers, the energy market in Turkey looks like this:

1. currently, Turkey has more than 11 million energy household consumers and their number continues growing;
2. Turkey has an energy independence rate of 25%, which is expected to increase as renewable energy is growing;
3. by the end of 2019, the government plans on increasing the clean energy production by 30%;
4. the government is currently working on the creation of a law providing for renewable energy free zones.

If you need help in establishing a company electricity, gas, steam and air conditioning supply, do to not hesitate to contact our Turkish company formation consultants.