The Amendment Regulation to the Electricity Market Balancing and Settlement Regulation was published in the Official Gazette on January 21, 2025, introducing several key changes to market operations, supplier replacement, energy storage participation, and financial regulations.
Key Amendments
1. Supplier Replacement Process for Eligible Consumers
1.1 If multiple suppliers request the same eligible consumer, the consumer will be notified and must select a supplier via the Market Management System (PYS) within a specified period.
1.2 If no selection is made, all requests will be rejected.
1.3 Effective Date: June 1, 2025
1.4 Impact: This enhances market competition and transparency, ensuring a structured supplier replacement process.
2. Electricity Storage Units & Market Participation
2.1 Integrated storage units within generation facilities will be linked to the settlement supply/draw units of the facility.
2.2 This allows more efficient management of energy generation and storage.
2.3 Standalone storage units (≥10 MW) can participate in the balancing market if approved by the system operator.
2.4 Storage-based generation facilities can also act as balancing units if requested by the participant and approved.
2.5 This enhances flexibility and supports renewable energy integration.
3. Day-Ahead Market Process
3.1 If the Ancillary Services Regulation procurement process is delayed due to technical issues at TEİAŞ, it can be extended by up to 1 hour 45 minutes with notifications via PYS.
3.2 Effective Date: January 1, 2027
3.3 Impact: Prevents disruptions in the market due to technical delays.
4. Energy Imbalance & Settlement Regulations
4.1 Unlicensed producers connected to the transmission system must submit their generation/consumption programs and available capacities.
4.2 Settlement units linked to storage-based generation facilities must execute balancing market instructions.
4.3 In force majeure situations, unlicensed generation facilities & standalone storage facilities will also receive emergency instructions.
4.4 Settlement period for the balancing power market: 15 minutes.
4.5 New energy imbalance formulas were introduced, incorporating time-based variables.
4.6 Effective Date: January 1, 2027
4.7 Impact: Improves pricing accuracy and transaction efficiency.
5. Operational & Compliance Requirements for Storage Facilities
5.1 Obligation to Maintain Operability: Storage units must remain 85% available for the first five years and 80% thereafter.
5.2 Sanctions apply if a facility fails to meet operational conditions for more than 10 settlement periods in a billing cycle.
5.3 Impact: Ensures reliability and prevents market manipulation.
5.4 Sanctions for Non-Compliance: Energy supplied from non-compliant facilities will not be included in settlements.
5.5 If participating in YEKDEM, this energy will be considered a free contribution to the YEKDEM pool.
5.6 Exemptions & Tolerances: Compliance tolerance values will be determined based on total installed capacity.
5.7 If a facility undergoes a capacity increase, additional storage must be measured separately.
6. Financial Regulations
6.1 Intra-Day Market Operating Fees: A new formula was introduced based on transaction volume & dispute resolution costs, improving cost estimation.
6.2 Payments & Collections: If balancing power market instructions are not followed, financial penalties will apply.
6.3 Market participants failing to meet collateral obligations will be subject to enforcement actions.
6.4 License Cancellation & Market Exit Procedures: If a market participant's license is canceled, assets will be transferred to licensed participants or responsible supply companies.
6.5 If a facility changes ownership, it may be removed from the aggregator's portfolio and assigned to the new license holder.
7. Overall Impact
7.1 Increased participation of electricity storage facilities in the market, supporting renewable energy.
7.2 More precise energy balancing mechanisms to ensure grid stability.
7.3 Stronger financial enforcement to improve market discipline.
7.4 Clearer regulations for supplier replacement, improving competition.
7.5 Greater integration with YEKDEM, ensuring storage units contribute effectively to the renewable energy sector.
In Conclusion
These changes enhance market efficiency, transparency, and energy security, positioning storage facilities as a crucial part of the future electricity market.
We believe that the legislation will evolve alongside potential practical issues, and that its implementation will guide the regulatory framework.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
