How is expropriation carried out in wind energy projects?

ENTRANCE

Renewable energy investments, particularly wind energy projects, hold a significant place in Türkiye's energy policies. Wind power plants require large areas of land, access roads, and energy transmission lines. However, the land necessary for these projects may not always be owned by the investor. In such cases, the expropriation process comes into play.

This article will detail the expropriation processes, legal basis, compensation principles, and landowners' rights in wind energy projects.

1. Legal Basis of Expropriation

Expropriation is the acquisition of privately owned real estate by the administration for public benefit, in exchange for compensation. The basic legislation governing the expropriation process in wind energy projects is as follows:

The Constitution of the Republic of Turkey (Article 46) states that private property may be interfered with for the public good, provided that compensation is paid in advance.
Law No. 2942 on Expropriation: Regulates the procedures and principles of expropriation.
Electricity Market Law No. 6446: Allows for the expropriation of land necessary for energy projects.
Law No. 5346 on Renewable Energy: Ensures that renewable energy projects are evaluated within the scope of public benefit.
EPDK Decisions and Regulations: These define the powers of the EPDK (Energy Market Regulatory Authority) in the expropriation processes of licensed energy projects.

2. Why is expropriation necessary for wind energy projects?

The following areas are typically expropriated for the construction of wind power plants:

Areas where wind turbines will be installed,
Transformer substations and switchyards,
The routes of energy transmission lines,
Access roads and service roads.

The project owner first attempts to reach an agreement with the landowners through purchase or lease. However, if an agreement cannot be reached, expropriation is pursued.

3. Who has the authority to expropriate?

The Energy Market Regulatory Authority (EPDK) has the authority to initiate the expropriation process for licensed wind power projects.
Ministry of Energy and Natural Resources: Approves the expropriation request by making a decision based on public interest.
Following expropriation, the property is generally registered in the name of the Treasury and allocated for the use of the relevant licensee.

4. Expropriation Process

4.1. Public Interest Decision

The first stage of expropriation is obtaining a formal decision that the project is in the public interest.

This decision is made by the Ministry of Energy and Natural Resources or the Energy Market Regulatory Authority (EPDK).
The decision specifies the block/parcel information of the parcels to be expropriated and the purpose of the expropriation.

4.2. Valuation (Price Determination)

The market value of the property is determined by independent appraisal experts.
Buildings, trees, crops, and other value-enhancing elements on the land are also evaluated separately.

4.3. Procurement Initiative

After determining the price, the administration makes a settlement offer to the landowner.

Amicable settlement is the preferred first option.
If an agreement cannot be reached, legal action will be taken.

4.4. Expropriation Case

The administration files a lawsuit in the Civil Court of First Instance for the determination of the expropriation price and registration.
The court determines the final price through expert assessment, and the amount is paid to the property owner.

4.5. Title Deed Registration

Once payment is received, the property is registered in the public interest and opened for use in the project.

5. Urgent Expropriation

In strategically important projects related to energy supply security, the expedited expropriation method can be applied.

According to Article 27 of Law No. 2942, land can be quickly confiscated by a presidential decree.
This method is frequently used in wind energy projects to expedite the completion of transmission line routes.

6. Rights of Landowners

Landowners have various legal rights during the expropriation process:

Compensation increase lawsuit: A lawsuit can be filed claiming that the compensation for expropriation is too low.
Objection to the public interest decision: A lawsuit can be filed in the administrative court to annul the decision.
Right of repurchase: If the expropriated land is not used within 5 years, the owner can request the return of the property.
Improvement fee request: Additional charges may apply for additional structures, products, or facilities.

7. Principles of Compensation in Expropriation

Factors considered when determining the expropriation compensation:

The market value of the land,
The agricultural income potential of the land,
The value of the building, facility, tree or crop on it,
Location and zoning status of the land.

Valuation techniques such as comparable sales prices, income method, and cost method are used during the valuation process.

8. Easement Rights and Expropriation

In wind energy projects, easements can be established instead of full expropriation for transmission lines or infrastructure facilities.

An easement allows an investor to use only a specific portion of the property.
In this case, the landowner retains their property rights but receives compensation for the restriction on use.

9. Legal Disputes

The most common disputes encountered during the expropriation process are:

The compensation for expropriation was deemed insufficient
The claim that haste is unlawful,
Deficiencies in the EIA (Environmental Impact Assessment) report
Claims that land use will cause environmental damage.

These disputes are usually heard in administrative courts or civil courts of first instance.

10. The Role of the Lawyer

The expropriation process requires technical and legal knowledge from both the administration and the landowner.

From the investor's perspective: The complete preparation of EPDK (Energy Market Regulatory Authority) applications, public interest decisions, and expropriation files.
From the landowner's perspective: Filing lawsuits for increased compensation, appealing the expropriation decision.

A lawyer specializing in energy and expropriation law can ensure that rights are not lost during this process.

11. Process and Timing

Public interest decision: 1-3 months
Pricing and negotiation: 3-6 months
Legal process: 6-12 months
In expedited expropriation: The process of seizing the property can take place in a short period of time, such as 1-2 months.

12. Conclusion

Wind energy projects are of great importance for the future of renewable energy investments. However, the expropriation process in these projects is a complex procedure that must be carefully managed by both investors and landowners.

The public interest decision should be made transparently
Fair valuation in determining the price,
Completing the EIA processes is of great importance.

Gamze Akbulut, Law Faculty Student

Law No. 2942 on expropriation, expedited expropriation in energy, compensation determination lawsuit, land rights in energy projects, EPDK expropriation decisions, transmission line easement rights, public interest decision in energy, wind energy expropriation process, wind energy expropriation, renewable energy land issues.

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