A capacity mechanism is operated by TEİAŞ in order to create sufficient installed power capacity, including the reserve capacity required to ensure supply security in the electricity market, and to maintain reliable installed power capacity to ensure long-term system security. The rules regarding this capacity mechanism are regulated in the Electricity Market Capacity Mechanism Regulation.
TEİAŞ makes capacity payments to generation license holders within the annual budget for the establishment and / or maintenance of sufficient installed power capacity, including the reserve capacity required to ensure supply security in the electricity market. These payments are determined based on the unit fixed cost components of the power plants in the capacity mechanism and the total installed power on a resource basis.
Application to Capacity Mechanism
The legal entities who want to benefit from the capacity mechanism in the next calendar year apply to TEİAŞ with the application form for each power plant in operation and with the candidate application form for each power plant whose provisional acceptance will be made within the next calendar year, until 15 October at the latest. During the application, the application form / candidate application form determined by TEİAŞ and the documents showing that the generation facilities meet the necessary conditions to benefit from the capacity mechanism are submitted to TEİAŞ. TEİAŞ announces the facilities that will benefit from the capacity mechanism in the next calendar year, on the last day of October at the latest and notifies the EMRA.
Power plants with a public share of more than 50%, power plants with build-operate and build-operate-transfer contracts and those that have been operating within the scope of these agreements even though the agreement has expired, Power plants established by winning the privatization tender within the scope of EML art.18/5, nuclear power generation plants established within the scope of international agreements (even if their incentive period has been completed), power plants that benefit from or have the right to benefit from RERSM at any time, power plants with privatization tenders, power plants with an installed power of less than 50 MWe for power plants based on domestic resources, and less than 100 MWe for other power plants, power plants that are not based on domestic resources, whose temporary acceptance date is above 13 years, calculated starting from the date of provisional acceptance of the oldest unit under the temporary acceptance or by applying to the Ministry of Energy and Natural Resources, efficiency performance test results Power plants whose ratio is determined to be below 50%, not based on domestic resources and power plants based on wind and solar that cannot produce uninterruptedly are not included in the capacity mechanism.
Capacity Payments
The proposal regarding the annual budget based on the capacity payments to be made in the next calendar year and the distribution of the budget to the billing periods within the year is submitted to EMRA until the end of October by TEİAŞ. EMRA approves this proposal in November, exactly or changing it.
Capacity payments made within a calendar year cannot exceed the budget determined for the relevant calendar year. In case the capacity payments made for a calendar year remain below the budget determined for the relevant calendar year, the remaining budget cannot be transferred to the next year.
The capacity payments to be made to the generation facilities are calculated within 30 days following the end of the relevant invoice period and notified to the relevant license holder legal entities within 45 days and announced on the website.
No capacity payment is made to power plants whose weighted average capacity utilization rate is less than 10% for those based on domestic resources and 15% for others in the 12-month period from the last date of application.
Regardless of the capacity utilization rate, this capacity is included in the payment mechanism until 12 months have passed since the first unit of the relevant power plant was commissioned for new plants.