The law applicable to electricity sale contracts

The primary aim of this thesis is to examine electricity sales contracts containing a foreign element within the framework of private international law and international trade law. In the context of a globalized economy, electricity is not merely a technical or economic commodity, but also a strategic asset situated at the intersection of legal regulations and international cooperation. Particularly in contracts concluded between parties established in different states, questions concerning applicable law, jurisdiction, contractual validity, and methods of dispute resolution arise as significant legal challenges. The first chapter of the study explores the legal nature of electricity, the definition and classification of electricity sales contracts, and the relevant national and international regulatory frameworks. Special emphasis is placed on bilateral agreements and their role in the electricity market under Turkish law. The second chapter addresses the determination of applicable law in light of the provisions of the Turkish Code on Private International and Procedural Law (MÖHUK), the scope of party autonomy in the choice of law, objective connecting factors in the absence of such choice, and the limitations posed by overriding mandatory rules and public policy. Moreover, the impact of the provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG) on electricity sales contracts has been examined. In conclusion, electricity sales contracts with a foreign element require a multidimensional approach that combines both national legal systems and the principles of international energy law. To enhance legal certainty, balance the interests of the contracting parties, and increase predictability in international trade, it is argued that choice-of-law mechanisms should be applied more effectively and that dispute resolution methods— particularly arbitration—should be further strengthened.