Turkey: Wholesale Electricity Trading In Turkey: A Basic Primer To Electricity And Gas Wholesale Trading

A. Wholesale electricity trading

1. Background information

The developments on Turkey's electricity market have rapidly changed the rules of the game, pushing the sector towards progressive liberalisation, and the market players towards fast adaptation to the new environment. The process has been driven by the continuous development of the legal framework, the recent liberalisation programme (which is still an ongoing process), and the setting-up of the Turkish NRA as an independent regulatory authority - the Energy Market Regulatory Authority (EMRA).

The Electricity Market Act 2001 (Elektrik Piyasası Kanunu) sets forth the legal framework for Turkey's entire power market, whereas the Communiqué regarding Electricity Market Licences 2002 (Elektrik Piyasası Lisans Yönetmeliğ) and in particular the Communiqué regarding Electricity Market Balancing and Settlement 2009 (Elektrik Piyasası Dengeleme ve Uzlaştırma Yönetmeliği) provide ancillary and detailed provisions regarding wholesale electricity trading.

Turkey is currently an observer but it has expressed formally the interest to join as full member the Energy Community Treaty.1

2. Licensing requirements

Under the Electricity Market Act 2001 all Electricity Traders trading on the wholesale electricity market in Turkey and cross-border must hold a valid licence.

The licence is issued by EMRA for up to 49 years and covers cross-border trading as well.

Only companies incorporated in Turkey (either as a limited liability company (Limited Şirket) or as a joint-stock company (Anonim Şirket) can be licensed. There are no restrictions or special requirements with respect to these companies' share capital and/or shareholder structure.

Licences cannot be transferred to third parties, but there is no restriction on transferring the shares of the licensed Electricity Trader, provided that for transfers of more than 10% of the shares EMRA's approval is sought and obtained.

3. Trading requirements

3.1. Bilateral contracts market

About 85% of wholesale traded capacity is done through bilateral negotiated contracts. The contracts are not subject to the approval of the EMRA. Therefore, all commercial terms and conditions are freely negotiable.

The EMRA has announced that it intends to standardise these agreements in order to further facilitate bilateral trading by introducing framework agreements provided by EFET. Nevertheless, neither a timeline, nor an action plan is yet in place.

3.2. Power exchange

On the power exchange electricity can be traded day-ahead and in real-time. The Market Financial Settlement Centre (Piyasa Mali Uzlaştırma Merkezi – MFSC) operates the day-ahead market, as well as the balancing market. The gate closure time for the day-ahead market is 11:30 am of the previous day. All price bids are collected by the MFSC, which then determines a system day-ahead price applied to purchases to be made via the MFSC.

The real-time trading is operated by the National Load Dispatch Centre (Milli Yük Tevzi Merkezi), which acts as system operator. The gate closure time for this market is 15 minutes before dispatching.

Electricity Traders can join the power exchange platforms by signing standardised market participation agreements with the state-owned Turkish Electricity Transmission Company (Türkiye Elektrik İletim A.Ş- TEIAS).

3.3. Balancing market

Electricity Traders have to either (i) conclude a bilateral electricity purchase agreement serving as balancing agreement with another licence holder; or (ii) contribute to the balancing market themselves.

3.4. Market share restrictions

The total market share electricity traded by any private Electricity Trader active on the wholesale market (together with its affiliates) cannot exceed 10% of the total domestic electricity consumption of the previous year.

4. Cross-border trading

Although in principle there are no restrictions to cross-border trading, the Communiqué regarding Electricity Market Export and Import 2011 sets out certain technical requirements that need to be closely observed.

Turkey is engaged in inbound cross-border trading with Georgia, Turkmenistan, Iran, Bulgaria, Azerbaijan and Greece, and outbound with Azerbaijan, Iraq, Georgia, Syria and Greece.

5. Grid access

The Procedures and Principles regarding Capacity Allocation and Secondary Transmission Rights 2011 (Elektrik Piyasasi İthalat ve İhracat Yönetmeliği Uyarınca Kapasite Tahsisine ve İkincil Ticari İletim Hakkı Piyasasına İlişkin Usul ve Esaslar) entered into force only recently. In order to access the electricity grid, market participants have to apply to TEIAS for third-party access approval. Under the supervision of TEIAS, a capacity allocation tender takes place. A separate tender is called for each interconnection capacity.

6. Further liberalisation

In December 2010, approximately 125 different wholesale companies, including the state-owned Turkish Electricity Trading and Contracting Company (Türkiye Elektrik Ticaret ve Taahhüt A.Ş. – TETAS) with a market share of about 40%, were active on the wholesale market. TETAS's licence is due to expire on December 31, 2012 and it is envisaged that TETAS's market share will then be allocated among the other market players.


1 Treaty establishing the Energy Community was signed in October 2005 in Athens, Greece. It entered into force on 1 July 2006.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions