Turkey\u2019s Power Futures Market was launched on Tuesday within the country\u2019s energy exchange, EXIST, to provide participants with market stability and transparency.<\/p>\n
Fatih Donmez, Turkey\u2019s 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.<\/p>\n
Market participants currently trade through the spot power market in Day-Ahead and Intraday markets operated by EXIST in Turkey.<\/p>\n
“Market participants will have the opportunity to hedge the price risk with respect to their price expectations against future price changes,” he noted.<\/p>\n
The Power Futures Market will include a daily benchmark price for each open contract.<\/p>\n
“The price will create a price signal to market participants and investors for future prices and long-term supply security,” Donmez said.<\/p>\n
He also said that six monthly and two quarterly contracts have been opened for transactions from June 1 for trade this year.<\/p>\n
– Participants to be protected from risks<\/p>\n
EXIST\u2019s General Manager Ahmet Turkoglu also commented that the Power Futures Market would instigate a bigger trade volume as more traders participate.<\/p>\n
The country\u2019s energy exchange will provide a central counterparty service to lower risks by providing guarantees for trade payments and services, he explained.<\/p>\n