Turkey to continue power infrastructure privatisation

• 13 years ago (2011-01-18)
• Junior Isles

Europe 1068 Middle East 317

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Turkey’s largest electricity generation plant, Hamitabat power station (HEAŞ), is to be privatised in the next few days according to Privatization Administration (ÖİB) Vice President Ahmet Aksu.

Aksu noted that all Turkey’s public electricity distribution grids, except one, were privatised last year for TL 12.3 billion, with this announcement coming as a continuation of this trend. He said Turkey’s “four largest thermal power plants - HEAŞ, Soma A-B, Çan and Seyitömer - will be privatised individually”, while the remaining stations “will be privatised in nine groups”.

Soma A-B, located in the western province of Manisa, has a capacity of 1034 MW, while Çan and Seyitömer each have a generating capacity of 320 MW and 600 MW, respectively. The total installed capacity of all plants that are up for sale is almost 16 000 MW.

HEAŞ, which is located in the northwestern province of Kırklareli, generates electric power for Turkey’s Thrace region and the European side of İstanbul. With a capacity of 1120 MW, the plant alone produces 7 per cent of Turkey’s total electricity output.

Aksu said the ÖİB will opt to privatize HEAŞ through selling shares in the plant, adding that in general “the administration’s policy with regard to privatising hydroelectric power plants is to transfer their operating rights, but for thermal plants to transfer property rights.”

For him, initial public offerings (IPOs) are also viable for some plants. Commenting on the possible advantages these privatisations may bring to consumers, Aksu said he “expects price reductions as the private owners of these companies engage in an intensive campaign against electricity theft and losses.” He added that “the ÖİB’s priority is not the revenue to be earned from these sales but to increase efficiency and competitiveness in Turkey’s energy market.”.

Aksu also separately said the ÖİB “aims to achieve the transfer of Ankara’s natural gas distribution grid, Başkent Doğalgaz [which was bought by MMEKA A.Ş. for about TL 2 billion] before March”. In addition to Başkent Doğalgaz, MMEKA also won the tenders to buy three key electricity distribution grids last year.