Privatisation of Turkey's power industry

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Mines

According to the constitution coal mines cannot be privately owned. However the state licenses operation of some mines to private companies. [1] In November 2017 four thousand miners occupied a mine in Zonguldak to protest against privatization.[2]

Power plants

Isken(OYAK and Steag)'s 1320 megawatt coal-fired İsken Sugözü power station was the first privately owned power station in Turkey. The power station, which is located at Iskenderun, is based on imported coal.

Timeline

  • 2011: The head of the Privatization Administration, Ahmet Aksu, announced that the agency planned to start the privatization of thermal power plants owned by EUAS with a total capacity of 16,000 megawatts (MW) as soon as possible. Aksu said that the 1,120 MW gas-fired Hamitabat power station would be the first to be sold. Other power stations which had been mentioned in earlier reports were the 1,034MW lignite-fired Soma A and Soma B power station, the 320MW lignite-fired Çan-1 power station and the 600MW lignited-fired Seyitomer Power Plant.[3][4] The Privatization Administration sought bids for the purchase of the publicly owned 1,120 MW gas-fired Hamitabat power station. The initial deadline was June 27, 2011.[5] Energy Ministry undersecretary Metin Kilci announced that details of the tender process for the privatization of the 600MW lignite-fired Seyitomer Power Plant would be announced in the near future.[6] This was extended to September 23, 2011.[5] The tender attracted only one bid and as a result the tender was canceled.[7]
  • 2012: Revised deadline for bids for the deadline for final bids in the sale of the Hamitabat power station. [8]
  • 2013: Privatization Authority announces that it has sold the operating rights of its lignite-fired Seyitomer Power Plant for $2.25 billion to the Turkish company, Çelikler Holding.[9] The revised deadline for the submission of tender bids for the Hamitabat power station. No explanation for the delay was provided by the government but one Turkish energy analyst stated that it was probably due to the bidding companies requesting more time. Financial Times journalist David O'Byrne noted that "failure to sell Hamitabat at the second attempt would not bode well for plans to sell off the rest of Turkey’s state generating portfolio, which the government plans to complete over the next year."[7]
  • 2017: Çayırhan-2 was the first project under the new privatization method, in which mining rights and associated power plant construction are agreed at the same time. [10] Three thousand miners occupied a mine in Zonguldak owned by TTK to protest against privatization: it was removed from the bill being discussed in parliament.[11]
  • 2018: The deadline for tenders for Eskişehir Alpu power station and associated coalfield was extended several times. According to Selahattin Anaç, the former general manager of TKI, investors are reluctant because all but one of the coalfields being tendered are low-calorie and high cost; and that lenders also reluctant. He said that firms that had bought previously had run up a lot of debt and that the state was keeping them afloat with its purchase guarantee.[12]

Current privatization model

In contrast to the previous Royalty Model the government now favors MTA finding the areas, EÜAŞ preparing them for electricity production followed by tendering by the Privatization Administration.[13]

Articles and resources

Notes

References


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External resources