Turkey Sells 457-Megawatt Kangal Lignite-Fired Plant for $985 Million

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Researched by Industrial Info Resources (Sugar Land, Texas)--Turkey's Privatization Authority (PA) received a top bid of $985 million for the privatization of the Kangal coal-fired power plant. Of the seven firms bidding for the privatization tender, Turkey's Konya Seker and Siyahkalem Muhendislik consortium submitted the highest bid for the 457-megawatt (MW) power plant based in Sivas, in central Turkey.

The tender included the transfer of the operating rights for the plant, the operating license, and assets of the related lignite fields. The Kangal coal-fired power plant constitutes 0.8% of Turkey's total installed capacity and 1.2% of the 2011 production.

Haluk Direskeneli, an independent energy analyst in Ankara, said that the price is reasonable. "Also, the venture is ready to consume generated electricity within group companies. The rehabilitation cost for Kangal is estimated at $50 million, to be spent in the next five to six years."

In late December, Turkey's Privatization Authority sold the operating rights for the lignite-fired Seyitomer Power Plant for $2.25 billion to Celikler Insaat (Ankara, Turkey). This marks the highest offer placed in 2012 regarding power grid privatizations. For additional information on Seyitomer, see January 3, 2013, article - Turkey Sells 600-Megawatt Seyitomer Lignite-Fired Plant for $2.25 Billion.

The privatization tenders of Ayedas, which is a power grid that operates in the Asian side of Istanbul, and Toroslar EDAS are planned for February 19, 2013. Ayedas currently serves 2.3 million customers.

In December alone, Turkey sold Bogazici EDAS and Gediz EDAS' operating rights for $1.96 billion and $1.23 billion, respectively.

Turkey generates 41.4% of its electricity from natural gas-powered plants; 27.4% from coal-powered plants; and 25.9% from hydroelectric plants. Turkey's total electricity generation capacity is 55,875 MW.

Turkey is planning a full liberalization in electricity markets, which includes an electricity exchange. According to draft legislation, the exchange will operate as a spot market, a day-ahead and intra-day market, which will allow for futures contracts.

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