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ARTICLE · 16 MARCH 2015

A Way To Avoid Unstable Electricity Market Prices In Turkey: Risk Sharing Contracts

Following the privatization of energy market in Turkey, in last 10 years, many big investors have lined up to obtain energy generation, distribution, wholesale and retail-sale licenses in order to make investments in energy sector due to its high profit potential.

TurkeyEnergy and Natural Resources

Following the privatization of energy market in Turkey, in last 10 years, many big investors have lined up to obtain energy generation, distribution, wholesale and retail-sale licenses in order to make investments in energy sector due to its high profit potential. Statically proven that according to Fortune magazine's top 500 companies in Turkey; 6 of top 10 companies are conducting operations in energy sector. It is surely a reasonable market to invest; however market privatization is still in maturity stage that leads very dynamic and surprising market prices causing low budget companies to go bankruptcy.

In order to minimize the risks of big losses; companies have started to sign financial contracts (or RISK SHARING CONTRACTS) in order to minimize the influence of unforeseen market prices.

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