Erdogdu, Erkan (2010): A paper on the unsettled question of Turkish electricity market: Balancing and settlement system (Part I). Published in: Applied Energy , Vol. 87, No. 1 (January 2010): pp. 251-258.
Download (965kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||A paper on the unsettled question of Turkish electricity market: Balancing and settlement system (Part I)|
|English Title:||A paper on the unsettled question of Turkish electricity market: Balancing and settlement system (Part I)|
|Keywords:||Balancing and settlement; Turkey; Electricity wholesale market|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy
|Depositing User:||Erkan Erdogdu|
|Date Deposited:||22. Dec 2009 06:06|
|Last Modified:||12. Feb 2013 09:28|
 Erkan Erdogdu, Regulatory reform in Turkish energy industry: an analysis, Energy Policy 35 (2) (2007), pp. 984–993. Article | PDF (169 K) | View Record in Scopus | Cited By in Scopus (8)
 G. Streckiene, V. Martinaitis, A.N. Andersen and J. Katz, Feasibility of CHP-plants with thermal stores in the German spot market, Appl Energy 86 (11) (2009), pp. 2308–2316. Article | PDF (656 K) | View Record in Scopus | Cited By in Scopus (1)
 A. Rabiee, H. Shayanfar and N. Amjady, Multiobjective clearing of reactive power market in deregulated power systems, Appl Energy 86 (9) (2009), pp. 1555–1564. Article | PDF (489 K) | View Record in Scopus | Cited By in Scopus (2)
 A. Diongue, D. Guégan and B. Vignal, Forecasting electricity spot market prices with a k-factor GIGARCH process, Appl Energy 86 (4) (2009), pp. 505–510. Article | PDF (376 K) | View Record in Scopus | Cited By in Scopus (2)
 D.J. Druce, Modelling the transition from cost-based to bid-based pricing in a deregulated electricity-market, Appl Energy 84 (12) (2007), pp. 1210–1225. Article | PDF (297 K) | View Record in Scopus | Cited By in Scopus (3)
 C. Lee and J. Lee, Energy prices, multiple structural breaks, and efficient market hypothesis, Appl Energy 86 (4) (2009), pp. 466–479. Article | PDF (287 K) | View Record in Scopus | Cited By in Scopus (2)
 J.C. Cuaresma, J. Hlouskova, S. Kossmeier and M. Obersteiner, Forecasting electricity spot-prices using linear univariate time-series models, Appl Energy 77 (1) (2004), pp. 87–106.
 EMRA (Energy Market Regulatory Authority). Electricity Market Balancing and Settlement Regulation; 2008. <http://www.epdk.org.tr> [accessed 26.12.08 at 12:18].
 TEIAS/MFSC (Market Financial Settlement Center). Reports. Ankara; 2008. <http://pmum.teias.gov.tr> [accessed 26.12.08 at 16:13].
 Erkan Erdogdu, An expose of bioenergy and its potential and utilization in Turkey, Energy Policy 36 (6) (2008), pp. 2182–2190. Article | PDF (324 K) | View Record in Scopus | Cited By in Scopus (3)
 Erdogdu, Erkan, 2005. Energy market reforms in Turkey: an economic analysis. MSc Dissertation, Department of Economics, Surrey University, Surrey, UK; September 2005.
 Erkan Erdogdu, Nuclear power in open energy markets: a case study of Turkey, Energy Policy 35 (5) (2007), pp. 3061–3073. Article | PDF (395 K) | View Record in Scopus | Cited By in Scopus (6)
 Erkan Erdogdu, Electricity demand analysis using cointegration and ARIMA modelling: a case study of Turkey, Energy Policy 35 (2) (2007), pp. 1129–1146. Article | PDF (1654 K) | View Record in Scopus | Cited By in Scopus (12)