ENERGY DERIVATIVES- AN ANALYSIS OF THE TURKISH ELECTRICITY MARKET

With the new risk perception in financial markets, use of derivative instruments has increased. In particular, energy derivatives, which are used to reduce risks associated with price fluctuations, have been widely worldwide and recently Turkey. The objective this paper is contribute limited literature by analyzing evolution base load futures contracts traded Turkish electricity market. Based on a comprehensive review, SWOT analysis conducted identify strengths, weaknesses, opportunities threats these instruments. It concluded that, especially after radical restructuring market, transparent, reliable competitive investment environment created now one most important that help market participants manage or hedge risks.