Turkey’s EUAS expected to hold yearly electricity capacity auctions from 2013
Private Turkish electricity companies will be allowed to bid for energy freed up by the state incumbent EÜAŞ from next year, a source familiar with the arrangements has told ICIS.
The company is expected to organise annual auctions for anything between 5-15TWh, which represents between 570MW-1.7GW of continuous baseload generation.
The source said EÜAŞ expects to sell the energy under closed annual auctions, but added that smaller batches of monthly, quarterly and half-yearly capacity could also be tendered from next year.
He pointed out that the volumes that would be released to the free market represented the energy kept by the state-owned producer to balance its portfolio.
EÜAŞ said earlier this year it would free up its entire generation currently sold as part of long-term contracts to the state wholesaler TEIAŞ and distribution firms from 2013. The generation would have amounted to 92TWh, or 30% of the market's total generated volume (see EDEM 6 June 2012).
However, the firm is now unlikely to offload the full amount in one go, but release it gradually to cushion the market from any price increases that might occur if the company's entire generation is released (see EDEM 5 November 2012).
Under existing arrangements, the bulk of hydro generation from the EÜAŞ portfolio is sold to state-owned wholesale company TETAŞ, which in turn sells the purchased generation to state-owned and private distribution companies. Meanwhile, the generator's thermal generation is sold at regulated tariffs directly to state and private distribution companies. AS
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