Denizli Natural Gas-Fired Combined-Cycle Power Plant

In 2009, Turcas signed a partnership agreement with the German RWE AG group, one of the world’s largest energy companies, to invest in a large-scale natural gas-fired power plant, and established the joint venture company RWE & Turcas South Power Generation (RWE & Turcas).

Denizli Natural Gas-Fired Combined-Cycle Power Plant, with 800 MW of installed capacity and a total investment cost of nearly EUR 600 million, became operational after obtaining a technical approval from the Ministry of Energy and Natural Resources on June 22, 2013. The Plant, which bears the capacity to generate over 6 billion kWh of power annually, is operated by RWE & Turcas, all units and functions of which are resident in Türkiye. RWE & Turcas’ paid-in capital is TRY 1.1 billion and there is no financial indebtedness in its balance sheet. Operational since 2013, the plant has created value with its high availability rate of 91.8% on average over this period. Thanks to the production flexibility, the Plant responds fully to the load ramp-up/ramp-down instructions of the system operator TEİAŞ and supports network and supply security. It also operates in ancillary services markets with its generation flexibility and is one of the main service providers of TEİAŞ in frequency control. In addition, it is still one of the active power plants in the market since it utilizes different trading channels through bilateral agreements and day-ahead/intraday market transactions. Significant changes were made in the market conditions, particularly in the last quarter of the year considering the relative decrease in 2023 and aiming to return to normality upon the excessive rise in international commodity prices since 2022. In the first quarter of 2023, there was a shutdown of operations for nearly 2 months, and major maintenance of the power plant was successfully completed. All these risks encountered in the electricity market were successfully managed. The power plant continued to meet Türkiye’s power demand with high efficiency during the year, and played an instrumental role in the country’s power supply security.

RWE & Turcas Gas Import Export, which was established as a wholly owned subsidiary of RWE & Turcas in 2012 to manage the Denizli Natural Gas-Fired Combined-Cycle Power Plant’s natural gas supply operations, still performs its activities under the Spot Import license that also covers wholesale natural gas transactions. The validity of the relevant license was extended for 30 years in 2022. RWE & Turcas Gas Import Export follows the opportunities that may come up in the gas market considering the developments, and has provided alternatives and flexibility in the natural gas supply of the Plant as needed since 2018.