Glossary of Energy Terms

Active Energy: The electricity energy obtained by multiplying active power by time. Its unit of measure is accepted as kWh.

Active Power: The power constituent that comes out by multiplying the cosine of the angle between the current and the voltage drawn from a mains by the current and by the voltage.

Intermediary Bank: The bank used by market participants for the purpose of conducting operations of invoice payment and guarantees.

Advance Payment: The payment which is made relying on the advance payment notification published without billing the electricity energy traded the previous day, within the scope of day ahead balancing.

Connection Point: The field points on which market participants connect to a transmission or distribution system in accordance with connection agreements.

Unit Sale Price: The unit sale price apart from the taxes, funding, expenses etc. which Turkish Electricity Transmission Company (TEİAŞ) is to pay for 1 kWh of electricity energy it will procure from the supplier.

Block Purchase Bid: Active electricity energy purchase bids of market participants who participate in day ahead market; which are applicable to more than one successive hours of the next day, including information about the average price and amount for the timeframe it encompasses.

Block Sales Bid: Active electricity energy sales bids that are valid for more than one consecutive hour for the next day, including average price and average quantity information for the time interval it spans and submitted by market participants that participate to the day ahead market

RLDC:  Regional Load Dispatch Center

Distribution Area: The name given to an area defined in a distribution license in accordance with the Electricity Market Legislation. It is also known as the area defined in distribution company’s license.

License holder legal person: The companies holding a distribution license, which were established in accordance with the provisions of the Turkish Commercial Code dated 29/6/1956 and numbered 6762, and the legal personalities holding distribution licenses.

Technical Loss in Distribution System: Technical energy loss on a distribution system which is operated in accordance with the provisions of EMRA’s decision regarding coefficients of loss.

Distribution System: Electricity distribution facilities and mains that a distribution company operates and/or owns in its specified area.

Distribution Company (EDAŞ): The legal person that does the business of electricity distribution in a specified area.

Distribution: The operation of the transmission of electricity energy done on the lines, voltage levels of which are 36 kV or below.

Valuation Coefficient: The coefficient which is to be used in determining the TL equivalent of the non-cash guarantees demanded from market participants.

Balance Responsible Group: The group formed by market participants through informing the market operator. Here, a market participant among the group takes over the liabilities regarding balance responsibility on behalf of the group.

Balance Responsible Party: The market participant who takes over financial liability on behalf of the group, in the group responsible for balance or the market participant who is not involved in any group responsible for balance.

Balancing Entity: Generation or consumption facility or part of the generation or consumption facility eligible to participate in balancing.

Balancing Power Market: The organized wholesale electricity market operated by system operator and in which the trade of reserve capacity obtained by the output power change which can be done in 15 minutes in order to serve the purpose of real-time supply-demand balancing.

Balancing Mechanism: Activities which have a complementary nature for reciprocal agreements and which consist of real-time balancing with day ahead balancing.

Balancing: Activities carried out in order to keep the supply and demand of electricity energy at balance.

EIC: The system of defining and coding energy, the procedures and principles for the forming of which are determined by ENTSO-E and announced on the official web site of the organization, and which is used in all countries affiliated to ENTSO-E.

Electricity Market Legislation: The legislation which designates the license or licenses related legal persons have; with Laws, regulations, notifications, circulars, resolutions.

Energy Fund Fee: The portion taken on the discounted retail sales price of electricity energy in accordance with the amendment dated 09.07.2008 and the law numbered 5784 regarding the amendment the 11th clause of the Electricity Market Law.

ENTSO-E: The European Network of Transmission System Operators for Electricity.

EMRA: Energy Market Regulatory Authority.

Flexible Sales Bid: The bids which the market participants who join day ahead balancing activities propose regarding the sales of active electricity energy for the following day, hourly and without being bound to any specific hour.

Matching: In a trade zone or in a zone consisting of certain trade zones, the operation of determining the junction point of the supply and demand curves of the respective area by drawing them and taking the hourly purchase and sales bids submitted to day ahead market for the trade zones in the respective area into account.

Billing Period: Refers to the period which starts at 00.00 o’clock on the first day of a calendar month and ends at 24.00 o’clock on the last day of the same month.

Price Area: All of the trade zones which have the same hourly marginal price for a settlement period as part of the balancing power market.

Real-Time Balancing: The activities carried out by the system operator for the purpose of keeping the supply and demand of active electricity energy at balance real-time.

Day ahead Balancing: The activities regarding day ahead planning done in order to balance the supply and demand in the system or regarding day ahead market.

Day ahead Price: The system marginal prices determined within the scope of day ahead planning or the final market exchange prices determined in the day ahead market.

Day ahead Market Price: The final market exchange price.

Day ahead Market Accession Agreement: The standard agreement in which conditions and provisions regarding market participant’s participation into day ahead market and Market Operator’s operation of day ahead market.

Day ahead Market Bids: Single hour purchase and sales bids, block purchase and sales bids and flexible sales bids that are submitted by the market participants who participate in the day ahead market.

Day ahead Market: The name given to the organized wholesale electricity market established for trading operations of electricity energy on the basis of settlement period a day after which delivery will be done and which is operated by the Market Operator.

Day ahead Planning Module: The software module which is a part of Market Management System and which is used as part of day ahead planning, by the Market Operator and the system operator for the purpose of determining system marginal prices and realizing the creation of the day ahead schedule in a way that would minimize the balancing expenses of its functions.

Day ahead Planning: The activities carried out with the coordination of the Market Operator for the purpose of day ahead balancing the hourly demand forecast for the next day, until the time day ahead market enters into force.

Day ahead Schedule: The national scale generation/consumption schedule prepared for the following day, as a result of day ahead balancing activities

Day ahead System Purchase Bids: The hourly and block purchase bids submitted as part of the day ahead balancing activities.

Day ahead System Sales Offers: The hourly, block and flexible sales offers proposed as part of the day ahead balancing activities.

Bilateral Agreements: The name given to the trade agreements signed between real or legal persons and license holder legal persons, or between license holder legal persons, for the trade of electricity energy; under the provisions of civil law.

Transmission Capacity: The amount of the power of electricity energy in megawatts (MW) that can be sent/received from any point of the transmission system.

Configuration of Transmission System: The rules of calculation including information like the meters that should be taken into account so as to measure the electricity energy supplied to or drawn from the transmission system, what direction the meters are in terms of supply or draw and the coefficients of loss that will be applied to the meters.

Transmission System: The general name given to electricity transmission facilities and mains.

Transmission: The Refers to the delivery of electricity energy, on the lines voltage levels of which are above 36 kV.

Referential Connection Point: The referential point used in the calculation of losses in the Procedures and Principles related with Calculation Methodology for Loss Coefficients, drafter by the Authority and enacted upon approval by EMRA.

Final Day Ahead Generation/Consumption Schedule (FDGS): The generation or consumption values which a settlement aggregation entity anticipates to realize in the following day and notifies the System Operator at the opening of the balancing power market according to the obligations of the balance responsible party to which it is attached and the result of day ahead balancing

Congestion Management: The methods used for the elimination of any congestion that has arisen or is foreseen to arise in the transmission system

Unconstrained Market Clearing Price (UMCP): Hourly electricity energy purchase and sales price that is determined by matching the hourly sale and purchase bids, submitted for a certain hour and for all the trade areas in day ahead market

Lot: Refers to the amount of energy, which is used for the purpose of notifying about offers as part of the day ahead market and the bilateral agreements which are included in the settlement, and which is equivalent to 0.1 MWh.

Central Settlement Bank Agreement: The agreement which will be signed between the Market Operator and central settlement bank, and which includes the obligations and liabilities of the parties regarding collateral management and payments.

Central Settlement Bank: The bank used by the Market Operator and market participants for it to carry out the transactions regarding the payment and collateral within the scope of this Regulation.

Central Settlement Bank-Participant Agreement: The agreement which will be prepared by the Market Operator and signed between market participants and central settlement bank, with regard to the services of collateral management and cash clearing services.

National Load Dispatch Center (NLDC): The central unit which is within the body of TEİAŞ, and responsible for the real-time balancing of the supply and demand of electricity energy and system operation.

Final Unit Sale Price: The unit sale price calculated by adding all charges, taxes, funds and expenses (for example; system use charge, energy fund, TRT cut, electricity consumption tax, VAT); except for the retail sales price, as defined in the regulation for tariffs.

Final Market Clearing Price (FMCP): The hourly electricity energy purchase and sales price that is determined for a certain trade zone and a certain hour by considering the transmission constraints between trade zones.

Organized Wholesale Electricity Market: The name given to electricity markets such as day ahead market, balancing power market and ancillary services, in which wholesale purchase and sales of electricity energy, capacity or their derivative products is carried out and which is operated by the market and/or system operator.

Medium Voltage: The name given to contract power that is between 36kV and 1kV.

Automatic Meter Reading System (AMRS): The system which will be established by TEİAŞ and legal persons holding distribution licenses, for the purpose of remote reading meter data automatically, transferring data to a central system, verifying them, completing missing data, keeping data and presenting them to related parties in requested formats; and which comprehends the required software, hardware and communication infrastructures.

Metering System: All of the metering equipment including meters, related communication equipment, metering transformers (voltage and current transformers) and cabling.

Market Operator: Market Financial Settlement Center.

Market Participation Agreement: The standard agreement covering the provisions and conditions regarding the operation of balancing mechanism by the Market Operator and System Operator and the participation of the market participant to the balancing mechanism excluding Day Ahead Market.

Market Participant: License holder legal persons explained in the Regulation.

Market Financial Settlement Center (MFSC): The unit whose duties and responsibilities are set out in the Law and in the Regulation, and which is in charge of operating the day ahead planning/day ahead market and settlement.

Market Management System (MMS): The applications that are working as thin client aimed at executing the balancing mechanism and settlement transactions and accessible by the Market Operator, System Operator, market participants and transmission and distribution license holder legal persons responsible for reading the meters.

Primary Frequency Control Capacity: The part of the operational reserve used to stabilize the system frequency through automatic use of turbine speed regulators and selected to be enough for this operation.

Sales Cost: The total cost which will be calculated by multiplying the unit sales price agreed upon by the parties by the amount of sales of the related consumption period.

Secondary Frequency Control Capacity: The part of the operational reserve that is used by the means of secondary control system and that is chosen to be adequate for this operation, in order to release the primary control reserve, used with the aim of frequency control, to bring the frequency back to its nominal value, and to keep the electricity energy exchange among neighbor electricity networks at the programmed level.

System purchase instruction: Notifications made by the system operator or the Market Operator to the related market participants for the system purchases of market participants participating in the day ahead planning.

System purchase instruction: Notifications made by the system operator or the Market Operator to the related market participants for the system purchases of market participants participating in the day ahead planning.

System purchase bid price: The unit prices requested from the system for purchase by the market participants participating in the day ahead balancing activities.

System purchase bid volume: Reduction of generation or increase in consumption volumes offered at the related balancing unit by the market participants participating in the day ahead balancing activities.

System Imbalance Price: The price applied for the energy imbalances of market participants arising from their balance responsibilities, as determined for each settlement period.

System Marginal Price: The bid price which corresponds to the net instruction volume determined by taking all the instructions given as part of the balancing power market into account, starting from the lowest of up-regulation bid prices when the direction of the system displays energy deficit and the highest of the down-regulation bid prices when the direction of the system displays energy surplus

System sale instruction: The notices sent by the system operator or the Market operator to the related market participants regarding the system sales of market participants participating in day ahead planning activities.

System sale bid price: The unit prices requested by the market participants participating in day ahead balancing activities for sale to the system.

System sale bid volume: Increase of generation or decrease in consumption volumes offered at the related balancing entity by the market participants participating in the day ahead balancing activities.

Demand Control: The services carried within the framework of principles indicated in Electricity Market Grid Regulation in order to reduce demand in case of insufficient available generation capacity, by TEİAŞ and the users.

Demand Forecast: The hourly consumption forecasts published on a daily basis by the System Operator.

Instruction Tag: The variable used for identifying the purpose of the up-regulation and down-regulation instructions issued by the System Operator to the market participants in day ahead planning and/or balancing power market.

Supplier: The generation companies, auto producers, wholesale companies and retail sale license holder companies providing electricity energy and capacity.

TEDAŞ: Turkish Electricity Distribution Corporation

TEİAŞ: Turkish Electricity Transmission Corporation

Trade Zone: The name given to the smallest topological transmission system area where large scale transmission constraints are expected on the transmission system connection points that constitute the borders of these zones.

Collateral Level: The total amounts of the assets that can be accepted as collateral and submitted by a market participant to the Market Operator.

Facility: The name given to the facilities installed for the purpose of generating, consuming, transmitting or distributing electricity.

TETAŞ: Turkish Electricity Trading and Contracting Co. Inc.

Trade Limits: The maximum allowable hourly transmission capacity limits for electricity trading between trade zones excluding transmission capacity that is out of usage due to technical and security reasons.

Commercial Transaction Confirmation: Notification of Market Operator that includes the purchase and sales quantities of each relevant market participant, and notified following the calculation of final market clearing price for each trade zone.

Wholesale Electricity Market: Electricity markets like day ahead market, balancing power market and ancillary services that are organized by Market Operator and/or System Operator or the bilateral agreements market where wholesale trade of electrical energy, capacity or derivatives take place.

Settlement Period: The periods taken as a basis for settlement transactions.

Settlement: The activities of calculating the amounts payable and receivable due to balancing mechanism and/or energy imbalances and of preparing the related payable-receivable notices.

Settlement Delivery Point: A transmission system connection point where consumption or export from the transmission system occurs and that is subject to transmission system loss.

Entity: Each generation entity which can independently up-regulate or down-regulate, each gas turbine and generator and the share of steam turbines and generators that will operate as connected to gas turbines and generators in the case of combined cycle power plants.

Generation Facility: The facilities where electricity energy is generated.

Generation: The transformation of energy resources into electricity energy in generation facilities.

Ancillary Services: The services defined in the Electricity Market Grid Regulation.

Up-regulation Instruction: The notification issued by the System Operator or Market Operator to the related market participants, for up-regulation of the market participants participating in day ahead planning or balancing power market.

Up-regulation Offer Price: The unit prices requested by market participants participating in balancing power market, for up-regulation.

Up-regulation Offer Volume: The volumes of increase in generation or decrease in consumption, which market participants participating in balancing power market propose to undertake in the related balancing entity.

Up-regulation Offer: The proposals that include information such as price, volume and the effective period, and that is submitted for up-regulation by the market participants participating in balancing power market.

Up-regulation: The situation where a balancing entity sells energy to the system by increasing its generation or decreasing its consumption, in line with the instructions issued by System Operator.

Down-regulation Instruction: The notifications issued by the System Operator or Market Operator to the related market participants, for down-regulation of the market participants participating in balancing power market.

Down-regulation Bid Price: The unit prices requested by market participants participating in balancing power market, for down-regulation.

Down-regulation Bid Volume: The volumes of decrease in generation or increase in consumption, which market participants participating in balancing power market propose to undertake in the related balancing entity.

Down-regulation Bid: The proposals that include information such as price, volume and the effective period, and that is submitted for down-regulation by the market participants participating in balancing power market.

Down-regulation: The situation where a balancing entity buys energy from the system by decreasing its generation or increasing its consumption, in line with the instructions issued by System Operator.