Enactment of the Electricity Market Law No. 4628 in 2001 is a crucial milestone towards liberalization of the electricity sector in Turkey.
Private sector has a limited share in the generation of power in Turkey. Share of the public sector is over %80 while that of the private sector is below %20. Large-scaled hydro-electric power plants, combined cycle gas turbines and coal/lignite-fired power plants have a considerable stake in electricity generation. Nuclear power generation has never been realized in Turkey although it has been planned for years. Elektrik Üretim A.Ş. (Electricity Generation Co./EÜAŞ), Türkiye Elektrik Taahhüt ve Ticaret A.Ş. (Turkish Electricity Contracting and Trade Co./TETAŞ) and Türkiye Elektrik İletim A.Ş. (Turkish Electricity Transmission Co./TEİAŞ) have the biggest shares in the electricity generation, wholesale and transmission markets, respectively.
In electricity distribution; state-owned Türkiye Elektrik Dağıtım A.Ş. (Turkish Electricity Distribution Co./TEDAŞ) and its wholly-owned subsidiaries hold a monopolistic control as of 2006-end.
Nevertheless, important steps towards the privatization of distribution were taken in 2006. Privatization Administration (PA) of the Prime Ministry of Turkey has initiated the tender procedure for the privatization of Anadolu Yakası Elektrik Dağıtım A.Ş. (AYEDAŞ), Sakarya Elektrik Dağıtım A.Ş. (SEDAŞ), and Başkent Elektrik Dağıtım A.Ş. – authorized to carry out electricity distribution activities in three regions (respectively; Istanbul Asian Side, Sakarya, and Ankara) – through block sale of shares method and on the basis of Transfer of Operational Rights.
Significant increase in electricity demand parallel to the economic/industrial development and growth as well as the potential of the market for investments gave birth to the strategic interest of Turcas to the Turkish power market.
For this reason, a Joint Venture Group (JVG) has been established by Turcas and Spanish Iberdrola, S.A. to participate in AYEDAŞ and SEDAŞ tenders. Iberdrola is one of the largest energy companies in Europe with its nearly 28,000 MW installed capacity, 18 million electricity subscribers worldwide and € 24 Billion market capitalization. The Iberdrola-Turcas JVG has obtained the related tender specifications from the PA and satisfied the pre-qualification criteria. The JVG continues its preparations for the tender which is currently delayed from the original date of January 19, 2007 to a date to be later defined by the PA. Turcas, with its partner, plans to participate in the privatization of some of the other distribution companies as well.
As per its macro vision, Turcas has already started preparing for the privatization of the state-owned power generation companies which will follow the privatization of the distribution companies.
Turcas has, in parallel, been evaluating new power plant projects not only in Turkey but also in neighboring countries such as Azerbaijan and Iran. These power generation projects are mainly based on imported coal / local lignite, natural gas, water (hydraulic) and wind.
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