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well as from the Balancing Market operated by the Market Financial
Settlement Center (“MFSC”). It is also involved in sales to concerned
electricity-to-electricity distribution companies, authorized supplier
companies, as well as customers who have direct access to the trans-
mission system and to the other countries in accordance with exporta-
tion agreements and the Balancing Market operated by the MFSC
3
.
In 2011, the most significant step for the Turkish electric market
was the establishment of the Day Ahead Market. The establishment of
the relevant market energized the Turkish electricity market and pro-
moted the establishment of a competitive market
4
. Participation to the
Day Ahead Market is not obligatory; however, all licensed legal per-
sons may participate in the Day Ahead Market by signing the Day
Ahead Market Accession Agreement. In the Day Ahead Market, par-
ticipants who are present propose to sell and purchase each hour of the
following day, and then Market Clearing Price is established at the
point where supply and demand is aligned. Following the closing of
the Day Ahead Market, real-time activities with the purpose to elimi-
nate real-time distortions regarding supply and demand is conducted in
accordance with the rules that cover the Balancing Power Market.
Therefore, with the impact of the Day Ahead Market and
Balancing Power Market, a market structure that is based on bilateral
agreements is targeted in The Turkish electricity market. Although the
proportion of the bilateral agreements concluded by the private sector
is low, the Report states that the increase of that proportion is the main
reason and result of the process on the establishment of a liquid whole-
sale market.
Another development in the electricity market might be specified
as the definition of the organized electricity wholesale market by the
Electricity Market Law. As stated in the Report, defining the organized
electricity wholesale market, and rendering day-ahead and intra-day
markets, balancing-ancillary services market, physical and derivative
markets made functional by the establishment of the electricity stock
market plays a significant role in the liberalization of the market.
148
NEWSLETTER 2015
3
Please see.
http://www.tetas.gov.tr(Access date: 05.05.2015).
4
Please see.
https://www.pmum.gov.tr(Access date: 05.05.2015).