Demand response regulation in Turkish organized electricity markets

The acceleration of the formation of the electricity market as of 2001 and the establishment of the Energy Exchange Istanbul in September 2015 provided an efficient trading environment between the electricity generators and suppliers. In the current system, electricity generators and suppliers are positioned according to the electricity consumers' consumption forecasts. These positions are; bilateral agreements, spot markets including Day Ahead and Intraday Markets, and in the final period the Balancing Power Market. In the current system, electricity consumption is independent of the prices formed in the spot / balancing power markets. In summary, supply is shaped according to the demand. Market access may not be provided to all participants clearly due to the sources of electricity production and the restrictions on electricity transmission. These conditions generally resulted with anomalies in prices and consumption side. These anomalies will cause the electricity market to run inefficiently with the inefficient reference price that costs will be reflected to the consumers in the long run. Demand-side participation practices are described to direct the electricity consumers with the demand shifts in the demand curve in the electricity market supplydemand curve to avoid excessive capacity consumption and abnormal prices in the short run. Demand-side participation in electricity markets has great importance for Turkey to respond to increasing energy demand in the most efficient way which will create a more competitive energy market.