Turkey begins power generation privatisation

• 12 years ago (2011-05-31)
• Junior Isles

Europe 1061 Middle East 311

---

Turkey is to privatise its electricity generation plants, following the success of its similar action to privatise its electricity distribution grid. The only exceptions to this are some strategic dams such as Atatürk, Karakaya and Keban which are built on international waters.

A total of 22 strategic dams installed on international waters will continue to be run by the state, while the remaining will be privatised after being divided into nine separate portfolios.

Turkey’s present total installed generation capacity is more than 50 000 MW. Turkey’s Electricity Generation Corporation, or EÜAŞ, currently owns a number of electricity generation facilities totaling nearly 21 000 MW of installed power, 41 per cent of the total.

Within the current programme, a total of 41 power plants including thermal and hydro will be privatised. This represents a total of nearly 13 000 MW of installed capacity. According to these figures, two-thirds of the installed power held by the EÜAŞ will be transferred to the private sector.

The 22 dams that have a strategic role and will not be privatised include Atatürk, Karakaya, Keban, Kralkızı, Dicle, Seyhan1, Seyhan 2 and Manavgat, and will be left outside the scope of the privatisation programme, according to Halil Alış, director general of the EÜAŞ.

In addition to this installed power owned by the EÜAŞ, 3834 MW of installed power owned by partners and 2439 MW of build-operate-transfer plant capacity may be privatised after being transferred.

When the electricity generation privatisations are completed, the state will possess only 7818 MW of hydro generation capacity.

Hamitabat natural gas combined-cycle power plant, or HEAŞ, is to be the first plant privatised with a capacity of 1120 MW.

Some seven companies have already offered their pre-qualification applications. Companies will be able to continue to submit their offers to the Privatization Authority until the end of June.

Commenting on a possible financing problem, similar to one experienced during the privatisation of electricity distribution grids, Turkey’s Energy Minister Taner Yıldız said, “I have no worries. The biggest source of financing is the political stability. The money gained by the political stability cannot be collected in any other cases.”

Even though there is currently excess generation in Turkey, Alış predicted that there will be a short fall within three years, “To this end, new investments should continue, without slowing down. Investments worth of some $7 million to $8 million are needed each year in the sector.”