Turcas Power Generation
In 2009, Turcas Power Generation signed a partnership agreement with the German RWE AG group, one of the world’s largest energy companies, to invest in a large-scale power plant, and thus established the joint venture company RWE & Turcas South Power Generation.
Denizli Natural Gas Combined Cycle Power Plant, with 775 MW installed capacity and a total investment cost of EUR 600 million, started operations after obtaining approval from the Ministry of Energy and Natural Resources on June 23, 2013. RWE & Turcas South Power Generation’s mission is to operate the natural gas combined cycle power plant, which will generate approximately 6.25 billion kilowatt-hours of electricity annually. The paid-in capital of RWE & Turcas South Power Generation is TL 430,000,000. Thanks to its investment, TEUAS raised its natural gas-fired installed power capacity to 232.5 MW in 2013.
On November 11, 2010, Turcas Power Generation, RWE & Turcas South Power Generation signed an export credit agreement with the West Landesbank - Bayerische Landesbank Banks Consortium under a loan guarantee from Euler Hermes German Export Credit Agency, and a commercial loan agreement with the Industrial Development Bank of Turkey (TSKB), for the financing of its share of 30% of the investment cost of the Denizli Natural Gas Combined Cycle Power Plant. Loan repayment process has started with the commissioning of the plant.
Additionally, Turcas Power Generation also owns the Conrad Cogeneration (combined heat and power) Plant with an installed capacity of 1.66 MW. An agreement was signed in 2011 for the sale of this plant to Yeditepe Beynelmilel Otelcilik, the owner of Conrad Istanbul Hotel. This transfer will be completed in 2014, once Energy Market Regulatory Authority’s approval is obtained.
RWE & Turcas Natural Gas Import and Export
RWE & Turcas Natural Gas Import and Export was established as a wholly owned subsidiary of RWE & Turcas South Power Generation to manage Denizli Natural Gas Combined Cycle Plant’s natural gas procurement and sales operations. At the end of 2012, the company acquired its Spot LNG license which also covers natural gas wholesale transactions. The company will also take advantage of the deregulated market environment and the increase in volume and liquidity resulting from the developments in the organized energy markets. The company plans to grow its business based on physical delivery in the over-the-counter, day ahead and balancing markets.