Turkish Grid Takeover Process to Finish May 1, Limak Chairman Says

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Researched by Industrial Info Resources (Sugar Land, Texas)--Chairman Nihat Ozdemir of Limak Holding, a company that has interests ranging from infrastructure to energy, said that the takeover process for the power grids will finish May 1. In response to a question in Afyon, he said that Limak-Cengiz-Kolin Consortium will begin to operate Akdeniz Elektrik Dagitim and Bogazici Elektrik Dagitim (BEDAS) in May.

"We don't have any financial difficulty for power grids," Ozdemir said. In 2012, the Limak-Cengiz-Kolin Consortium gave the highest bids for Akdeniz Elektrik Dagitim and BEDAS. The consortium paid $1.96 billion for operating rights for 30 years. BEDAS is currently servicing 4.1 million subscribers in the European side of Istanbul. For additional information, see December 18, 2012, article - Turkey's Biggest Grid BEDAS Attracts $1.96 Billion in Privatization Tender.

The consortium paid $546 million for Akdeniz Elektrik Dagitim on November 14, 2012. The company has 1.6 million subscribers with a consumption of 5.4 gigawatt-hours. For additional information, see November 14, 2012, article - Turkey's Akdeniz Grid Attracts $546 Million Privatization Tender.

"We're also interested in power grid privatizations in Eastern Europe and North Africa, to become a regional player in this sector," Ozdemir said. "Currently, we're holding some talks, which are in early stages right now."

He also forecasted that the power grid privatizations will be finished this year, and the state's portion in the power grid will drop below 30%.

"Turkey's electricity demand will rise 7% yearly in the 2013-2023 period," Ozdemir said.

According to the Turkish Energy Ministy, Turkey's total energy demand from primary sources was 115 million tons of oil equivalent in 2011. The ministry forecasts that the demand will rise 90% to 218 million tons of oil equivalent in 2023.

In early December, Turkish Energy Minister Taner Yildiz said that the country is targeting $115 billion of energy investments by 2023 to meet growing demand amid an economic expansion that has averaged 5.5% in the past decade. Also, the International Energy Agency said that the country "will likely see the fastest medium- to long-term growth in energy demand among the IEA member countries."

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