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provisions of the Electricity Market Law regarding wholesale markets,
as of 2013, a new period for the establishment of a well-operated, liq-
uid wholesale market has commenced.
Developments in Generation within the Liberalization Process
In the Report, it is set forth that due to the fact that electric energy
generation requires large-scaled investments, these private sector
investments in the Turkish electricity market has started with the estab-
lishment of Build Operate-Build Operate Transfer plants. It is foreseen
in the Report that the private sector’s role in electric energy generation
will increase by privatizations.
The variety of resources in the generation of electricity contributes
to the establishment of a competitive market. The Report determines
that among the electricity generation resources, natural gas plants have
a ratio of 43.63% in 2012. Consequently, when the high ratio of natur-
al gas among electricity generation resources is taken into considera-
tion, the liberalization process of the electricity and natural gas mar-
kets interact. However, in light of the determination made in the
Report, within the context of the current situation, as well as taking
into account the forecasts for 2017, the generation from hydraulic
resources is also significant in the Turkish electricity generation market.
Developments in the Wholesale Market within the
Liberalization Process
Türkiye Elektrik Ticaret ve Taahhüt A.Ş. (the Turkish Electricity
Trade and Undertaking Company) (“TETAŞ”), was established as the
first wholesale company in accordance with Law No. 4628 and as it is
indicated in the Report, TETAŞ undertakes liabilities for a smooth
transition in order to attain a competitive market.
TETAŞ is responsible for the sale and purchase of energy that arise
from long-term agreements, which are concluded by the state. TETAŞ
is active in trading and undertaking electricity on behalf of the state,
and purchases electricity energy from the Türkiye Elektrik Üretim
A.Ş.’s (Turkish Electricity Generation Company) (“EÜAŞ”) power
plants that operate pursuant to the Build Operate–Build Operate
Transfer-Transfer of Operational Rights model, and other countries, as
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