IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v87y2010i1p251-258.html
   My bibliography  Save this article

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

Author

Listed:
  • Erdogdu, Erkan

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.

Suggested Citation

  • Erdogdu, Erkan, 2010. "A paper on the unsettled question of Turkish electricity market: Balancing and settlement system (Part I)," Applied Energy, Elsevier, vol. 87(1), pages 251-258, January.
  • Handle: RePEc:eee:appene:v:87:y:2010:i:1:p:251-258
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306-2619(09)00254-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Diongue, Abdou Kâ & Guégan, Dominique & Vignal, Bertrand, 2009. "Forecasting electricity spot market prices with a k-factor GIGARCH process," Applied Energy, Elsevier, vol. 86(4), pages 505-510, April.
    2. Crespo Cuaresma, Jesús & Hlouskova, Jaroslava & Kossmeier, Stephan & Obersteiner, Michael, 2004. "Forecasting electricity spot-prices using linear univariate time-series models," Applied Energy, Elsevier, vol. 77(1), pages 87-106, January.
    3. Rabiee, A. & Shayanfar, H. & Amjady, N., 2009. "Multiobjective clearing of reactive power market in deregulated power systems," Applied Energy, Elsevier, vol. 86(9), pages 1555-1564, September.
    4. Erdogdu, Erkan, 2008. "An exposé of bioenergy and its potential and utilization in Turkey," Energy Policy, Elsevier, vol. 36(6), pages 2182-2190, June.
    5. Druce, Donald J., 2007. "Modelling the transition from cost-based to bid-based pricing in a deregulated electricity-market," Applied Energy, Elsevier, vol. 84(12), pages 1210-1225, December.
    6. Erdogdu, Erkan, 2007. "Regulatory reform in Turkish energy industry: An analysis," Energy Policy, Elsevier, vol. 35(2), pages 984-993, February.
    7. Erdogdu, Erkan, 2005. "Energy market reforms in Turkey: An economic analysis," MPRA Paper 26929, University Library of Munich, Germany.
    8. Erdogdu, Erkan, 2007. "Electricity demand analysis using cointegration and ARIMA modelling: A case study of Turkey," Energy Policy, Elsevier, vol. 35(2), pages 1129-1146, February.
    9. Erdogdu, Erkan, 2007. "Nuclear power in open energy markets: A case study of Turkey," Energy Policy, Elsevier, vol. 35(5), pages 3061-3073, May.
    10. Lee, Chien-Chiang & Lee, Jun-De, 2009. "Energy prices, multiple structural breaks, and efficient market hypothesis," Applied Energy, Elsevier, vol. 86(4), pages 466-479, April.
    11. Streckiene, Giedre & Martinaitis, Vytautas & Andersen, Anders N. & Katz, Jonas, 2009. "Feasibility of CHP-plants with thermal stores in the German spot market," Applied Energy, Elsevier, vol. 86(11), pages 2308-2316, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: A cross country panel data analysis," Energy Policy, Elsevier, vol. 39(3), pages 1080-1092, March.
    2. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erdogdu, Erkan, 2009. "On the wind energy in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1361-1371, August.
    2. Erdogdu, Erkan, 2008. "An exposé of bioenergy and its potential and utilization in Turkey," Energy Policy, Elsevier, vol. 36(6), pages 2182-2190, June.
    3. Erdogdu, Erkan, 2009. "Some thoughts on the Turkish electricity distribution industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1485-1494, August.
    4. Erdogdu, Erkan, 2007. "Nuclear power in open energy markets: A case study of Turkey," Energy Policy, Elsevier, vol. 35(5), pages 3061-3073, May.
    5. Ali Akkemik, K., 2009. "Cost function estimates, scale economies and technological progress in the Turkish electricity generation sector," Energy Policy, Elsevier, vol. 37(1), pages 204-213, January.
    6. Erdogdu, Erkan, 2011. "An analysis of Turkish hydropower policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 689-696, January.
    7. Erdogdu, Erkan, 2009. "A snapshot of geothermal energy potential and utilization in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2535-2543, December.
    8. Baris, Kemal & Kucukali, Serhat, 2012. "Availibility of renewable energy sources in Turkey: Current situation, potential, government policies and the EU perspective," Energy Policy, Elsevier, vol. 42(C), pages 377-391.
    9. Debnath, Kumar Biswajit & Mourshed, Monjur, 2018. "Forecasting methods in energy planning models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 297-325.
    10. Streckiene, Giedre & Martinaitis, Vytautas & Andersen, Anders N. & Katz, Jonas, 2009. "Feasibility of CHP-plants with thermal stores in the German spot market," Applied Energy, Elsevier, vol. 86(11), pages 2308-2316, November.
    11. Erkan Erdogdu, 2014. "The Political Economy of Electricity Market Liberalization: A Cross-country Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    12. G lden B l k, 2013. "Renewable Energy: Policy Issues and Economic Implications in Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 3(2), pages 153-167.
    13. Panapakidis, Ioannis P. & Dagoumas, Athanasios S., 2016. "Day-ahead electricity price forecasting via the application of artificial neural network based models," Applied Energy, Elsevier, vol. 172(C), pages 132-151.
    14. Lin, Whei-Min & Gow, Hong-Jey & Tsai, Ming-Tang, 2010. "An enhanced radial basis function network for short-term electricity price forecasting," Applied Energy, Elsevier, vol. 87(10), pages 3226-3234, October.
    15. Kucukali, Serhat & Baris, Kemal, 2009. "Assessment of small hydropower (SHP) development in Turkey: Laws, regulations and EU policy perspective," Energy Policy, Elsevier, vol. 37(10), pages 3872-3879, October.
    16. Erdogdu, Erkan, 2010. "Natural gas demand in Turkey," Applied Energy, Elsevier, vol. 87(1), pages 211-219, January.
    17. Erdogdu, Erkan, 2010. "Electricity Market Reform: Lessons for developing countries," MPRA Paper 27317, University Library of Munich, Germany.
    18. Tang, Ling & Yu, Lean & Wang, Shuai & Li, Jianping & Wang, Shouyang, 2012. "A novel hybrid ensemble learning paradigm for nuclear energy consumption forecasting," Applied Energy, Elsevier, vol. 93(C), pages 432-443.
    19. G lden B l k & A. Ali Ko, 2013. "The Implications of Biofuel Policy in Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 3(Special), pages 14-22.
    20. Erisa Dautaj Şenerdem & K. Ali Akkemik, 2020. "Evaluation of the reform in the Turkish electricity sector: a CGE analysis," International Journal of Economic Policy Studies, Springer, vol. 14(2), pages 389-419, August.

    More about this item

    Keywords

    Balancing and settlement Turkey Electricity wholesale market;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:87:y:2010:i:1:p:251-258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.