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Türkiye has prevailed in an international arbitration case brought by Italian energy giant Enel S.p.A. over the 2022 cancellation of a pre-license for a solar power plant in the southwestern province of Isparta, the country's energy regulator announced on Friday.
Energy Market Regulatory Authority (EPDK) said the International Centre for Settlement of Investment Disputes (ICSID) dismissed all claims by Enel, which had sought around $30 million in damages.
The Italian firm was arguing that the 2022 revocation of its pre-license by EPDK violated the Bilateral Investment Treaty between Türkiye and Italy that came into force in March 2004.
According to the regulator, the arbitration proceedings lasted more than two years and were coordinated by the Directorate General of Law and Legislation under the Presidency of the Republic of Türkiye.
The tribunal ruled unanimously in favor of EPDK, declaring that the regulator’s decision complied with both Turkish and international legal standards.
EPDK President Mustafa Yilmaz noted that the outcome confirms the legal soundness of Türkiye’s energy regulatory practices. He said the ruling demonstrates that EPDK’s administrative actions related to licensing are consistent with the rule of law and international obligations.
“This decision affirms the fairness and legal security of our energy markets at the international level,” Yilmaz stated. “Investors—whether domestic or foreign—are expected to fulfill their responsibilities. Licenses and pre-licenses can be revoked if obligations are not met, and no entity is exempt from this.”
He emphasized that while Türkiye welcomes investment in its local and renewable energy resources, the integrity of the regulatory framework will be maintained without exception.
Yilmaz also expressed gratitude to the legal teams involved, including those from the Presidency and EPDK’s Legal and Electricity Market departments, for their work in successfully defending the case.ı
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