2011 to see nearly TL 7 bln investment in Turkey energy market

Köktaş has said a total of TL 6.8 billion will be invested in Turkey's electricity and natural gas sector this year.

2011 to see nearly TL 7 bln investment in Turkey energy market

World Bulletin / News Desk

Energy Market Regulatory Agency (EPDK) President Hasan Köktaş has said a total of TL 6.8 billion will be invested in Turkey's electricity and natural gas sector this year.

During a press conference at the agency's headquarters in Ankara on Monday, Köktaş said TL 5.8 billion of that amount would be funded by private interests, with the other TL 1 billion to be floated by the government.

“In no other country would the private sector make this level of investment without being provided with a certain set of guarantees. Here, I would like to invite your attention to the fact that the private sector in Turkey will be investing TL 5.8 billion without any guarantees, bearing the risk on their own,” he said, stressing the profitability of the Turkish energy market.

Köktaş said that for the first time in Turkey's history, over half the share of energy investments will go toward renewable energy generation. He added that 2011 -- as was the case in 2010 -- will be a year of mergers and acquisitions in the energy sector. Last year Turkey privatized 11 public electricity distribution companies, generating total revenue for the government of TL 12.3 billion as a result of the deals. In line with its re-energized privatization campaign, Ankara's natural gas distribution company Başkent Doğalgaz was also sold separately for almost TL 2 billion in 2010.

Köktaş added that the focus on privatization in the electricity production market will continue.

“I want to point out that the energy sector will be one of the most important channels through which foreign direct investment will flow into Turkey,” he noted, remarking that the growth of Turkey's energy sector has been 8.4 percent annually for the past 40 years, while gross domestic product (GDP), on the other hand, grew by 4.1 percent over the same period. “In 2010, investments in the private energy sector exceeded TL 5 billion, and these investments facilitated the production of around 21 billion kilowatts of electricity,” he said.

When it comes to electricity theft and losses, Köktaş said his agency expects the rate of such losses will be around 15 percent this year. He said their objective is to reduce this to 10 percent by 2015. He noted that Turkey will save TL 3.3 billion annually when the 2015 target is met.

Last Mod: 10 Ocak 2011, 17:39
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