Our CEO Ahmet Türkoğlu was a guest in A Para-Energy Line broadcast. Türkoğlu evaluated the role of EXIST in energy markets and gave details about the Renewable Energy Guarantees of Origin System (YEK-G) and the Power Futures Market (PFM) that will commence operation on 1st June.

Our main objective is to create an efficient and sustainable pricing structure in spot markets.

Türkoğlu mentioned the differences between EMRA and EXIST before giving info on the activities of EXIST. He stated the following: “EMRA is our senior board that regulates energy markets, and EXIST is board that operates energy markets. We briefly call EXIST as the energy exchange. 30% of our energy exchange belongs to BIST, 30% to TEIAS and the remaining 40% shares belong to licensed participants that transact in the market. We have a total of 97 shareholders, 95 of whom from the private sector”.

Türkoğlu stated that EXIST acts as a board that conducts electricity & natural gas trade and creates prices in Turkey and also said “Our main objective is to create an efficient and sustainable pricing structure in spot markets. Our mission is to turn the created price into a globally acceptable reference price. As of today, the prices created in our electricity and natural gas market – MCP for electricity and DRP for natural gas – have become globally accepted prices. For example nowadays, our electricity and natural gas prices are below those in Europe”.

EXIST is the 4^th largest energy exchange in Europe.

Türkoğlu stated that EXIST is the 4^th largest energy exchange in Europe and said: “We had a turnover of 105 billion Liras last year. And we perform transactions by issuing invoices to all participants”. Türkoğlu summarized the operation of the market as follows: “All energy plants in Turkey can sell the energy they produced only in our exchange or through bilateral agreements. In our exchange, transactions can be made either in the Day-Ahead Market (DAM) or the Intra-Day Market (IDM)”. He also shared details about the operation of the markets. Türkoğlu said: “In the Day-Ahead Market, participants define the capacities they can produce for the following day on a daily or hourly basis. We bring together supply & demand in our exchange based on hours & prices and therefore create prices. We announce prices one day in prior. For instance today at 13.00 hours, we will have announced all hour-based prices for tomorrow. These matchups should be delivered tomorrow”.

Türkoğlu stated that the Intra-Day Markets offer the opportunity for performing balancing operations and said: “Electricity is a very challenging system. We can call the electricity infrastructure as the largest machine of Turkey. As electricity cannot be stored, our necessity cannot be met despite the availability of daily and hourly trades. The Balancing Power Market of TEIAS works for instantaneous transactions, and we perform the fiscal transactions of this market in EXIST”.

Türkoğlu explained the operation of the market with examples and said: “Power plants produce energy and sell them in the DAM or the IDM on a daily or hourly basis. We pay them the next day upon delivery. One can in fact consider this as a very good trading system. Regardless of the sector you are collaborating with, no difficulties exist for finding customers if you are a power plant. You have been matched in the market or you have signed a bilateral agreement, you then make delivery and receive your payment the following day. You don’t have collection and customer problems. One can say that these factors play a role for the appeal of energy sector investments in Turkey”.

We are one of the rare energy exchanges that, using the Transparency Platform, comprehensively provide market data under the same environment and at the same moment.

Türkoğlu stated. “Turkey grows despite the pandemic and we catch-up with that rhythm. During last years, we only witnessesed small falls in our volumes in the months of March and April. Apart from those, growth continued. We can say that this growth represents a factor that incents participants”. Türkoğlu further stated that they attached great importance to transparent and sustainable growth and said “We publish market data and our studies on this subject in our Transparency Platform. By using our Platform, we are one of the rare energy exchanges in the world that comprehensively provide market data under the same environment and at the same moment. We also play a pioneering role in this sense. Our market participants and overseas investors can reach all kinds of past and present data over our transparency platform”.

Power Futures Market represents a system that is present in world’s developed exchanges.

Before conveying the details about the Power Futures Market, Türkoğlu said “As the CEO of EXIST and on behalf of all my colleagues in our team, I’d like to say that we are proud of being in EXIST as it provided the opportunity for contributing to our country through the works we performed. Our power futures market, one of our new products, represents one of them”.

Türkoğlu stated that the Power Futures Market represents a system that is present in world’s developed exchanges and said the following about the Power Futures Market: “Also for us, it is a market that is present in the BIST with its financial aspect. And PFM will be a market with physical delivery. For investors, having a longer-term price projection has an important place. I therefore think that PFM is an important market for drawing investors to our country and that it will provide a foreseeable investment environment for investors. I believe that the monthly, quarterly and annual contracts that we will open to transaction in PFM will represent a large source for feasibility “. Türkoğlu stated that in PFM, EXIST would provide a counter-party service at the same time.

1^st June is very important for us, a day that we proudly await.

Türkoğlu stated the following about the opening of PFM and YEK-G: “1^st June is very important for us, a day that we proudly await. We will commission both of two markets. The Power Futures Market and the Renewable Energy Guarantees of Origin System and the Organized YEK-G Market”. Türkoğlu also stated with YEK-G, further support would be provided to companies that make production using renewable energy. He also stated that currently, consumers are guaranteed that the energy produced at source would be renewable energy, certification is made accordingly and energy is thereafter provided to requesting consumers.

Türkoğlu said that during the last years, important investments were made in our country in the field of renewable energy and added: “Today, 53% of 97.000 MW established power consist of renewable energy sources. We hold the 13^th row in the world and the 5^th row in Europe in terms of renewable source established power. This beautiful process will be enriched by YEK-G”.

Türkoğlu stated that YEK-G represents a process that can be evaluated within the context of consumers’ social responsibility and that just as YETA, YEK-G could be realized with voluntary participation. And he said the following about YEK-G and YETA: “Unlike YETA, the market mechanism will determine the price in YEK-G. We run this process using the block-chain technology so that it can be more transparent and reliable. I can say that we are the pioneers exchange in this sense”.

Türkoğlu finally state that the software for PFM was entirely written using national and domestic resources and that the studies for the Futures Natural Gas Market, the launching of which is planned towards the end-year, are currently in software phase. Türkoğlu said “We can consider PFM and VGP as markets that are complementary for each other. We attach importance to the discovery of natural gas in Black Sea especially in the sense that it will ensure more depth and more operations in our market”.

Please click here for viewing the broadcast participated by our CEO.

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