Turcas Kuyucak Geothermal Power Generation obtained a power generation license for 18 MW installed capacity in 2016. The power generation project accelerated after the final investment decision.
The first production well drilling and short-term well-flow tests were completed in November 2014 in the village of Yöre, Kuyucak district, Aydın province, an area covered by the operation license. To boost the number of production well drillings in response to the uncovered potential, the Company successfully completed drilling the second, third, and fourth production wells in December 2014-November 2015; fifth production well and first reinjection well in September-October 2016; second reinjection well in November-December 2016; and the sixth production well in early 2017. As a result, the Company was granted a power production license for 18 MW in the first phase. Another reinjection well and one additional production well were drilled in 2018. After this effort, the Company reached a total of seven production wells and three reinjection wells. During the year, Turcas Petrol A.Ş. also increased its participation in Turcas Kuyucak Geothermal Power Generation (TKG) from 92% to 100%.
On March 1, 2016, TKG signed a 14-year financing agreement with Türkiye Sınai Kalkınma Bankası A.Ş. (“TSKB”) with an interest-only payment period of up to 30 months. The arrangement consists of EUR 15 million and USD 40.5 million in cash and/or non-cash loans and TL 10 million in non-cash loans. The lending facility was used to finance the USD 71.25 million (including financing costs) Kuyucak Geothermal Power Plant investment.
The facility was officially and provisionally approved as 10 MW on October 27, 2017 and was at its full capacity of 18 MW on December 7, 2017 by the Ministry of Energy and Natural Resources. As a result of the applications made upon the approval, Turcas Kuyucak Geothermal Power Generation was added to YEKDEM’s structure.