Problems of the Supply Industry in Wholesale Electricity Markets

Authors : Mustafa Çağrı PEKER, Ayşen SİVRİKAYA

Pages : 408-420

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Publication Date : 2023-06-30

Article Type : Review Paper

Abstract :In this paper, we investigate the problems in the supply industry in wholesale electricity markets such as supply inadequacy, missing money, market power, and intermittent renewables since they are the main driver of the electricity market evolution. The main contribution of the paper is that it focuses on these problems both individually and holistically. We focus on the causality relationships among the problems. The paper discusses the possible solutions to these problems based on a problem-oriented perspective. Inefficient governance and regulation are the sources of the main problems in the supply industry except the problem of intermittent renewables. The problems of inefficient governance and regulation, inefficient pricing, and intermittent renewables create issues such as supply inadequacy and missing money. Reducing state ownership to sustain competition, establishing capacity markets to complement energy markets, implementing of market-oriented approach, setting up future markets, market monitoring, and a well-functioning network design are major pathways to phase out problems of supply industry.
Keywords : Organize Elektrik Piyasaları, Elektrik Piyasası Sorunları, Elekrik Üretim Sektörü, Arz Yetersizliği