Can a power plant continue operating in Turkey if zoning plans, building permits or occupancy documents are defective? A 2026 guide for foreign investors buying solar, wind and other energy projects.

A foreign investor acquiring an existing power plant in Turkey may discover that the project has generated electricity for years even though part of its zoning or construction documentation is incomplete, outdated or inconsistent with the facility actually built. This can become one of the most serious findings in energy-project due diligence.

A valid generation license does not automatically mean that every structure within the power plant complies with zoning and construction legislation. Likewise, historical electricity generation does not prove that every turbine, solar array, substation, control building or auxiliary structure was constructed in accordance with the applicable permits.

The consequences can range from a relatively manageable permit amendment to administrative fines, suspension of construction, refusal of an occupancy or operating document, or proceedings concerning an unauthorized structure. In serious cases, demolition measures can also become relevant.

The issue has become particularly important in 2026, because a new regulatory framework for the zoning and permitting procedures of licensed and pre-licensed wind and solar projects entered into force on July 24, 2026. It covers zoning and parcellation plans, building permits, occupancy permits, and workplace opening and operating licenses. (LEXPERA)

For foreign investors, the essential question is therefore not merely whether a defect exists. The real questions are whether it can be cured, whether the plant can continue operating while it is being cured, how much the cure will cost and who bears the risk after closing.

Does a Generation License Prove That the Power Plant Is Properly Permitted?

No. This is one of the most important distinctions in Turkish energy-project due diligence.

A generation license concerns the authorization to conduct electricity generation activity. Zoning plans, construction permits, land-use rights, environmental approvals and other project permissions operate under separate regulatory frameworks.

Consequently, a foreign buyer should never accept the argument:

“The plant has a generation license, therefore all construction is legal.”

The buyer should independently verify the zoning and construction status of the project.

For wind and solar facilities, the 2026 framework expressly regulates zoning plans, parcellation plans, building permits, building occupancy permits and workplace opening and operating licenses as distinct processes. (LEXPERA)

What Is a Zoning Defect?

A zoning defect can arise where the project as constructed is inconsistent with the applicable zoning framework.

The problem may concern the use of the relevant land, project boundaries, location of structures, infrastructure, turbine positions, solar arrays or auxiliary facilities.

In acquisition due diligence, the buyer should compare:

Approved Zoning Plan → Cadastral Parcels → Site Layout → Construction Permit → As-Built Facility.

Any material discrepancy requires investigation.

A project can appear completely operational from a technical perspective while still containing a legal inconsistency between its approved plans and physical configuration.

What Is a Construction Permit Defect?

A construction permit defect generally concerns the legal authorization for construction or compliance of the completed structure with the approved permit and its attachments.

The problem may arise because construction commenced without the necessary permit, because the permit expired, or because the structure was built differently from the approved project.

For foreign investors, the distinction between missing permit and construction contrary to an existing permit is important.

The available remedy and level of risk can differ substantially.

Construction Without a Permit

Construction carried out without a required building permit creates a significant acquisition risk.

Current legislation expressly contemplates enforcement measures where construction begins without a permit in wind or solar facilities whose zoning plans fall within the relevant Ministry framework. Measures under Articles 32 and 42 of the Zoning Law can apply, and where demolition is ordered the competent local authority may implement that decision following notification by the Ministry.

A foreign investor should therefore investigate unauthorized construction before closing rather than assuming that long-standing operation has cured the problem.

Construction Contrary to the Permit

A project may possess a building permit but nevertheless have been constructed differently from the approved documentation.

Examples can include different dimensions, additional buildings, relocated equipment, expanded structures or changes to the approved site configuration.

The 2026 wind and solar permitting regulation expressly addresses structures commenced without permits or constructed contrary to permits. (LEXPERA)

The buyer should determine whether the discrepancy can be regularized or whether more serious enforcement consequences exist.

Expired Building Permits

Permit timing should also be examined.

Under the 2026 wind and solar framework, structures whose construction does not commence within two years of the permit or is not completed within five years, without the required renewal, are treated as unlicensed structures. (Esin Attorney Partnership)

This can be particularly relevant for projects developed in several phases.

The buyer should therefore review the permit history of each material component rather than checking only the most recent document.

Can an Operating Power Plant Have a Permit Problem?

Yes.

Commercial operation and construction compliance are different legal questions.

A facility may have been connected to the grid and generating electricity while a construction or zoning issue remains unresolved.

This is why historical generation data should never substitute for legal due diligence.

The investor must separately verify:

Generation Authorization → Zoning → Construction Permit → Occupancy Status → Operating Authorization → Actual Construction.

Building Occupancy Permit Problems

Completion of construction can trigger requirements concerning the relevant occupancy documentation.

Under the new wind and solar framework, an application for a building occupancy permit for structures permitted by the Ministry requires a conformity report confirming construction in accordance with legislation, approved projects, standards and applicable technical requirements. If deficiencies or non-compliance are identified, correction can be required before the permit is issued. (Esin Attorney Partnership)

A buyer should therefore investigate whether all required occupancy documentation exists and corresponds with the structures actually used.

Workplace Opening and Operating License

The 2026 framework also expressly covers workplace opening and operating licenses for relevant wind and solar facilities. (LEXPERA)

This should be reviewed separately from the generation license.

The buyer should identify whether the project has all operating documentation applicable to its specific configuration and whether subsequent project changes have been properly reflected.

Solar Power Plant Zoning Problems

Solar projects can develop zoning defects following expansions or modifications.

For example, additional panels, inverter stations, storage systems or auxiliary structures may have been installed after the original project was permitted.

The buyer should compare the current site layout with the approved plans.

Particular attention should be paid to situations where the seller describes later construction as merely “technical optimization.”

A technical modification can still have planning or permitting consequences.

Wind Power Plant Permit Problems

Wind farms require particularly detailed review because individual turbines can have different coordinates, technical characteristics and construction histories.

The investor should compare:

Approved Turbine Coordinates → Actual Coordinates → Approved Turbine Specifications → Actual Turbine Specifications.

Changes in turbine location, height, rotor dimensions or supporting infrastructure can require additional regulatory analysis.

A project-level permit should not prevent turbine-by-turbine due diligence where material modifications have occurred.

Substation and Auxiliary Buildings

Foreign buyers sometimes focus exclusively on generation equipment.

That is a mistake.

Substations, control buildings, warehouses, security structures and other auxiliary facilities can also have zoning and construction implications.

A permit defect affecting strategically important auxiliary infrastructure can create operational consequences even if the turbines or solar panels themselves are compliant.

Battery Storage Added to an Existing Plant

Existing renewable projects increasingly incorporate storage facilities.

Where battery storage or other significant infrastructure has been added after the original project development, the buyer should investigate whether the zoning, construction, fire-safety and other relevant documentation properly covers the new installation.

The original power plant permits should not automatically be assumed to cover every later addition.

Project Expansion Without Updated Documentation

Capacity expansions deserve enhanced scrutiny.

Suppose an originally permitted solar facility subsequently increases its installed capacity and adds new equipment.

The buyer should determine whether all relevant plans, permits and project documentation were properly amended.

The same applies to wind projects where additional turbines were constructed or existing turbines were replaced.

Land Rights and Building Permits Are Connected

Permit due diligence should be coordinated with land due diligence.

The new 2026 framework requires evidence of rights over the project site in connection with relevant permit applications. For solar projects, certain lease or easement arrangements can be used where specified requirements are satisfied, including requirements concerning duration and land-registry annotation. (Esin Attorney Partnership)

Accordingly, a defect in land rights can also create difficulties in curing a construction-permit problem.

Can the Defect Be Regularized?

Sometimes.

Not every permit defect means that the power plant must permanently cease operation.

The first question should be whether the existing construction is capable of being brought into compliance with the applicable planning and construction framework.

Possible solutions may involve permit amendments, renewals, updated projects or correction of the physical structure.

However, the buyer should never assume regularization is guaranteed.

The feasibility, timing and cost should be independently established before closing.

Can the Plant Continue Operating During Regularization?

There is no universal answer.

It depends on the nature of the defect, the affected structure, applicable administrative decisions and whether the problem threatens the legal basis for continued use.

A relatively limited documentation discrepancy presents a very different risk from a structure constructed without the required permit.

Where the defect concerns essential infrastructure, the investor should model a possible interruption of operation rather than assuming uninterrupted generation.

Risk of Administrative Fines

Unauthorized or non-compliant construction can lead to administrative sanctions.

Current legislation specifically links unauthorized or permit-inconsistent construction within the relevant wind and solar framework to enforcement mechanisms under the Zoning Law.

The buyer should determine whether any existing violation has already generated a penalty and whether additional sanctions remain possible.

Risk of Demolition

Demolition represents the most serious construction-related acquisition risk.

The possibility should not be exaggerated for every minor discrepancy, but it should also not be ignored where material unauthorized structures exist.

Current legislation expressly contemplates demolition decisions within the enforcement framework for relevant unauthorized structures.

Where critical generation infrastructure is potentially affected, the investor should obtain specialized legal and technical advice before signing.

Seller Says the Municipality Has Never Objected

This is not sufficient protection.

The fact that the project has operated for years without enforcement action does not necessarily prove compliance.

A foreign investor should rely on documentary verification rather than historical administrative silence.

The buyer should ask for all permits, plans, correspondence, inspection reports, notices and amendment applications relating to the facility.

Seller Says the Defect Is “Technical Only”

This statement should also be tested independently.

A discrepancy can appear technically minor but have important legal consequences.

For example, relocation of equipment may affect land boundaries, approved plans, environmental documentation or safety distances.

Legal and technical advisers should therefore review the issue together.

2026 Changes Foreign Investors Must Consider

The most important recent development is the Regulation on Zoning and Permitting Procedures for Wind and Solar Power Generation Facilities, which entered into force on July 24, 2026.

It establishes procedures for zoning and parcellation plans, building permits, occupancy permits and workplace opening and operating licenses for wind and solar facilities holding a pre-license or generation license. (LEXPERA)

The framework also establishes Ministry procedures concerning permit applications, amendments, renewals and unauthorized construction.

Foreign investors acquiring Turkish solar or wind projects in 2026 should therefore ensure that due diligence reflects this new framework rather than relying exclusively on older project reports.

Existing Projects Should Be Rechecked

A due diligence report prepared several years ago may no longer provide sufficient comfort.

The buyer should compare historical approvals with:

Current Legal Framework → Current Facility Configuration → Current Land Status → Current License Capacity → Current Construction Status.

This is especially important where the project has undergone expansion, repowering, storage integration or other significant modifications.

Share Deal: Who Bears the Historical Permit Risk?

In a share acquisition, the project company remains the same legal entity after closing.

Therefore, a historical zoning or construction problem affecting the target does not disappear when the shares are transferred.

If enforcement action occurs after closing, the foreign buyer may suffer the economic consequences through the acquired company.

The SPA should therefore contain appropriate protection for pre-closing zoning and construction compliance.

Zoning and Permit Warranties

The seller may be required to provide representations concerning material zoning plans, building permits, occupancy documentation and compliance of project structures with approved documentation.

These warranties should be project-specific.

A generic statement that the company “complies with all applicable laws” may provide inadequate protection where due diligence identifies a specific permit concern.

Specific Indemnity for Known Permit Defects

Suppose due diligence discovers that an auxiliary building was constructed outside the approved project configuration.

The seller argues that regularization will be straightforward.

Instead of simply accepting that statement, the buyer can require a specific indemnity covering agreed costs and liabilities arising from the identified defect.

The indemnity can address administrative penalties, regularization expenses and other agreed losses.

Regularization as a Condition Precedent

Where the defect is significant, the strongest solution may be requiring the seller to resolve it before closing.

This can be particularly appropriate where the affected structure is essential to generation.

The SPA can make satisfactory regularization a condition precedent.

The buyer then avoids paying the full acquisition price before knowing whether the project can legally continue operating as expected.

Purchase Price Retention

Where regularization cannot be completed before closing, the buyer may negotiate retention of part of the purchase price.

The retained amount can provide security for the anticipated cost and risk.

This can be more effective than relying solely on a future damages claim against the seller.

Purchase Price Reduction

If the defect permanently reduces project capacity or creates unavoidable remediation costs, the issue should potentially be reflected directly in valuation.

A useful approach is:

Curable Minor Defect → Regularization

Known Financial Exposure → Price Adjustment

Known but Uncertain Exposure → Specific Indemnity + Retention

Critical Operational Defect → Resolve Before Closing

Example: Solar Plant Expanded Beyond Approved Layout

A foreign investor plans to acquire an operating solar facility.

During technical due diligence, the investor discovers that additional equipment was installed after the original construction phase.

The seller confirms that the equipment has generated electricity for several years.

However, legal due diligence reveals that the current physical layout does not fully correspond with the available construction documentation.

The buyer should determine whether amendment or regularization is legally possible before treating the additional capacity as part of the project’s acquisition value.

Example: Wind Turbine Built at a Different Coordinate

A foreign investor acquires a wind farm containing 25 turbines.

Survey information shows that one turbine is located differently from the position reflected in historical project documentation.

The issue should not automatically be dismissed because the turbine has operated successfully.

The buyer should investigate zoning, land, technical interaction, environmental and construction consequences before closing.

Example: Missing Occupancy Documentation

A power plant has been operating commercially, but due diligence cannot locate the required occupancy documentation for an important auxiliary structure.

The buyer should determine whether the document was never issued, has been lost or whether the structure itself contains a compliance problem preventing issuance.

These scenarios involve very different acquisition risks.

Example: Construction Permit Expired Before Completion

A project was constructed over an extended period.

Due diligence indicates that part of the facility may have been completed after the applicable construction permit ceased to remain effective.

The current 2026 framework expressly addresses situations where construction does not commence within two years or is not completed within five years without renewal. (Esin Attorney Partnership)

The buyer should establish the legal status of the affected structures before closing.

Major Red Flags for Foreign Investors

Foreign investors should investigate carefully where due diligence reveals missing zoning plans, inconsistencies between approved plans and the actual facility, missing building permits, expired permits, construction outside approved boundaries, undocumented capacity expansions, relocated turbines, additional auxiliary buildings, missing occupancy documentation, unresolved administrative notices, existing zoning fines, threatened demolition measures or seller resistance to providing complete construction files.

These issues should be classified according to their effect on continued operation.

Power Plant Zoning and Permit Due Diligence Checklist

Before acquiring an existing project, the buyer should verify:

Zoning Plan → Parcellation Plan → Project Boundaries → Building Permits → Permit Dates → Permit Renewals → Approved Projects → Actual Construction → Occupancy Documentation → Workplace Operating Documentation → Turbine Coordinates → Solar Layout → Substation → Auxiliary Buildings → Capacity Expansions → Storage Additions → Land Rights → Administrative Inspections → Fines → Pending Proceedings → Regularization Possibility → SPA Protection.

For projects modified after initial construction, every major modification should be separately matched against the relevant approvals.

Frequently Asked Questions

1. Can a power plant operate with a zoning defect in Turkey?

The answer depends on the nature and seriousness of the defect and any administrative action taken. Continued historical operation does not itself prove that the defect is legally harmless.

2. Does a generation license prove that all buildings are properly permitted?

No. Energy licensing and zoning/construction compliance involve separate legal requirements.

3. Can a construction permit defect be corrected?

Some defects may be capable of amendment or regularization, but this must be determined on a project-specific basis.

4. Can unauthorized construction result in demolition?

Potentially yes. The applicable framework provides enforcement mechanisms that can include demolition measures for qualifying unauthorized structures.

5. Is an expired construction permit a serious problem?

It can be. The timing of construction and any renewal should be investigated carefully.

6. Should every wind turbine be checked separately?

Where turbines have different locations, construction histories or modifications, turbine-by-turbine verification can be essential.

7. Should solar-project expansions be separately reviewed?

Yes. Additional panels, equipment, storage facilities or auxiliary structures should be checked against the relevant project documentation.

8. Who pays for a historical permit defect discovered after acquisition?

Statutory liability depends on applicable law, while the economic burden between seller and buyer can be allocated through the SPA.

9. Can the buyer demand that the seller correct the defect before closing?

Yes. Regularization of a material zoning or construction problem can be negotiated as a condition precedent.

10. What is the safest approach when a serious permit defect is discovered?

Determine whether the defect is legally curable, quantify the cost and operational risk, and then decide whether to require pre-closing correction, a price adjustment, specific indemnity, retention or withdrawal from the transaction.

Legal Support for Power Plant Zoning and Permit Risks in Turkey

A foreign investor should never value an existing power plant solely according to its installed MW, historical generation and EBITDA. The investor must also establish that the physical facility generating those revenues has a legally sustainable zoning and construction basis.

Firat Fesih Kaya Law Office assists foreign investors and international energy companies with acquisitions of solar, wind and other power projects in Turkey. Firat Fesih Kaya can assist with zoning and construction due diligence, permit-risk analysis, energy-project acquisitions, SPA negotiations, specific indemnities, conditions precedent and disputes concerning defective project approvals.

Before closing, the buyer should obtain a clear answer to one question: Can every material part of the power plant legally remain where it is, continue to be used and generate the revenue included in the acquisition valuation?

Phone: +90 312 434 22 22
Mobile Phone: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No: 221, Yildirim Tower, Balgat, Cankaya / Ankara, Turkey