The rapid integration of variable renewable energy resources into Türkiye’s power system, along with the increasing deployment of distribution-connected energy resources, has intensified discussions on the extent to which the current national pricing mechanism reflects evolving market conditions and price signals. The concentration of solar and wind generation capacity in specific regions has further increased transmission-level grid constraints and the associated need for system flexibility.
In this context, regional or nodal pricing mechanisms have the potential to more accurately reflect real-time grid conditions, reduce renewable energy curtailment through more efficient dispatch, and provide stronger locational signals for generation and grid infrastructure investments. In this study, SHURA assesses the potential impactions of regional and nodal settlement mechanisms as alternatives to the current national settlement framework in the Turkish electricity market.
The study analyzes the impacts of alternative pricing mechanisms on market outcomes and system operation under two main scenarios, considering regional grid conditions and supply-demand balances. Within this scope, Turkish electricity market and transmission grid were simulated based on 2035 projections to evaluate settlement outcomes under national, regional and nodal pricing mechanisms. The study also examines the potential contributions of regional and nodal marginal pricing mechanisms to the efficient and reliable operation of the power system, while enhancing the cost-effectiveness of electricity supply.
