Turkey’s power futures market launched

Turkey’s power futures market launched

ISTANBUL - Anadolu Agency
Turkey’s power futures market launched

Turkey’s Power Futures Market was launched on June 1 within the country’s energy exchange, EXIST, to provide participants with the market stability and transparency.

Fatih Dönmez, Turkey’s energy and natural resources minister, speaking at the opening ceremony said the market launch would contribute to the development of energy markets in the country.

Market participants currently trade through the spot power market in Day-Ahead and Intraday markets operated by EXIST in Turkey.

"Market participants will have the opportunity to hedge the price risk with respect to their price expectations against future price changes," he noted.

The Power Futures Market will include a daily benchmark price for each open contract.

"The price will create a price signal to market participants and investors for future prices and long-term supply security," Dönmez said.

He also said that contracts of six months and two quarters have been opened for transactions from June 1 for trade this year.

EXIST’s General Manager Ahmet Türkoğlu also commented that the Power Futures Market would instigate a bigger trade volume as more traders participate.

The country’s energy exchange will provide a central counterparty service to lower risks by providing guarantees for trade payments and services, he explained.