Turkey Opens Power Plant Privatization Tender

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Researched by Industrial Info Resources (Sugar Land, Texas)--Turkey's Privatization Administration (OIB) opened a tender to sell Hamitabat power station in Tekirdag, in the northwestern region of Turkey. The bidding deadline for the 1,120-megawatt, gas-fired power plant is October 19, 2012. The privatization of Hamitabat was cancelled after the OIB received only one bid last year, which was not enough to close the sales.

In Turkey, the imported natural gas price is about $400 per 1,000 standard cubic meters, which means $10 per million British thermal units, which is 7 cents per kilowatt-hour (kWh). "A gas-fired, combined-cycle power plant earns approximately an average of 2 cents per kWh at 8,000 hours per year availability. With this calculation, Hamitabat gas-fired combined cycle power plant will earn the max amount of $180 million annually at 8,000 hours per year expected availability," said Haluk Direskeneli, an independent energy analyst based in Ankara.

"We are planning to complete the auctions of the grids, as well as power plants and roads and bridges this year, though payment for some of those assets may be made in 2013," said Ahmet Aksu, head of the Privatization Agency to Bloomberg on August 9.

Also, Turkey's coal authority, Turkiye Komur Isletmeleri (TKI), opened a tender for the development of the Harmanalani and Davutlar lignite fields, which are based in the northwestern province of Turkey. The tender document included the construction and operation of a lignite powered power plant to burn the lignite produced by the fields. The bids for the tender can be submitted by November 1, 2012. The winning company will have a license for a 30-year operation period. The bids are to be made on the royalty level and to be paid to TKI per kWh.

In early April 2013, Turkish Energy Minister Taner Yildiz said that Turkey plans to open tenders for 6-7 gigawatts (GW) of new coal-fired power plants this year, and have between 17-18 GW of coal-fired plants operating by 2023.

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