A paper on the unsettled question of Turkish electricity market: Balancing and settlement system (Part I)

Erkan Erdoğdu ()

MPRA Paper from University Library of Munich, Germany

Abstract: Turkish electricity market law (EML) came into force in 2001 aiming at establishing a financially strong, stable, transparent and competitive electricity market based on bilateral contracts. Also, a balancing and settlement system (BSS) was put into practice in November 2004 to create a market where uncontracted generation can be traded, and actual implementation of the BSS started on August, 1st 2006 following a 21-month virtual implementation period. However, BSS has always been criticized from its beginning as transferring excessive profits to private generation companies. The present paper analyzes the implementation of BSS and argues that current BSS not only undermines the healthy development of the electricity market in Turkey but also prevents power investments due to uncertainties it created. It concludes that since the inconsistency between the objectives of EML and results of BSS in practice is obvious, Turkish policy makers need to modify current electricity market policy in line with suggestions presented in the paper.

Keywords: Balancing and settlement; Turkey; Electricity wholesale market (search for similar items in EconPapers)
JEL-codes: O13 Q4 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Applied Energy 1.87(2010): pp. 251-258

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Journal Article: A paper on the unsettled question of Turkish electricity market: Balancing and settlement system (Part I) (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:19090

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