Turkey's TEIAS and EEX Sign Memorandum of Understanding to Set Up Turkish Energy Exchange

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Researched by Industrial Info Resources (Sugar Land, Texas)--European Energy Exchange (EEX) (Leipzig,Germany) and Turkey's state-owned power grid operator Turkish Electricity Production Company (TEIAS) (Ankara, Turkey) signed a memorandum of understanding for co-operation to establish an organized energy market in Turkey. "A Turkish Energy Exchange with liquid power spot and derivatives markets is crucial for the successful liberalization and further growth of the electricity markets," said Metin Kilci, undersecretary for the Turkish Ministry of Energy and Natural Resources, in the statement.

Turkey's Energy Ministry is currently preparing a road-map for cross-commodity energy exchange, which will be based in Istanbul. A model under consideration is the incorporation of the Izmir-based futures exchange TurkDex and a new cross-commodity exchange into the current Istanbul stock exchange. The exchange may include power, gas, oil and carbon emissions trading contracts.

The Turkish government wants to create a regional financial centre in Istanbul; if it were subsumed under the Istanbul stock exchange, it would be intended to realize the goal of making Istanbul into a regional financial centre and energy hub. The Turkish Energy Ministry has been discussing the exchange plans with the energy industry.

"It is important to have a power exchange to form an energy hub in Turkey," said Andreas Radmacher, the chief executive of RWE Turkey Holding. "Turkey is the biggest economy in the region. If it can succeed in forming an exchange and hub, it will get more investment and security of investment," said Radmacher, to an interview with Anatolian News Agency on May 23.

RWE Turkey is a subsidiary of Germany's power utility firm RWE, which has been operating in Turkey since 2008. Currently, the joint venture of RWE and TURCAS (ISE:TURCS) (Istanbul, Turkey) constructing a 775-megawatt, gas-fired, combined-cycle power plant in Kaklik, Denizli.

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