Turkey, with its young population and growing energy demand per person, its fast growing urbanization, and its economic development, has been one of the fast growing power markets of the world for the last 20 years. It is expected that the demand for electric energy in Turkey will be 294 billion kWh by the year 2010 and 556 billion kWh by the year 2020. Turkey's electric energy demand is growing 7% yearly. Because a substantial amount of Turkey's energy need has been met by cogeneration facilities in recent years. Cogeneration facilities have an important role in Turkey's energy strategy. While there were only four cogeneration facilities and the total capacity of them was 30 MW e in 1994, in 1999, 10.6% of total electric production was produced by these facilities. In accordance with the governmental decree numbered 85/9799, cogeneration is the technology which produces electricity and heat synchronously and autoproduction is the name of the firm which was founded for the purpose of producing electricity and heat. In this study, the development of autoproduction facilities in Turkey, which are the most convenient legal investment model for cogeneration investors, has been investigated.