Privatization of Electricity Generation Sector in...
23
Privatization of Electricity Generation Sector in Turkey Republic of Turkey Privatization Administration October 2011
Transcript of Privatization of Electricity Generation Sector in...
Privatization of Electricity
Generation Sector in
Turkey
Republic of Turkey
Privatization Administration
October 2011
Agenda
▪ Overview of Turkish Electricity Generation Sector
▪ Privatization Portfolio
-Priority Power Generation Plants
-Plants with Capasity Expansion Potential
-Design of Portfolio Groups
-Portfolio Groups
▪ Important Issues
▪ Conclusion
Overview of Electricity Generation Company
EÜAŞ produced 46% of the electricity consumed in 2010
Distribution of the installed capacity in 2010
Source: EÜAŞ
Distribution of electric energy produced in 2010
100% = 49,5 GW 100% = 211.208 GWh
57,4%
Generation
Companies+TOR
21%
Built Own Operate
21%
Auto Producers
6%
Built Operate
Transfer
6%
EÜAŞ
46%
Built Operate
Transfer
5%
EÜAŞ
49%
Mobile
1%Auto Producers
6%Built Own Operate
12%
Generation
Companies+TOR
27%
EÜAŞ has generated 57% of its output from thermal power plants which
constitute 52% of its installed capacity
Breakdown of installed capacity by fuel type
SOURCE: EÜAŞ
Thermal power plants represent 52%
of EÜAŞ installed capacity
Percent, 2010
Breakdown of energy production by fuel type
27%
40%
Thermal power plants represent 57% of
EÜAŞ generation
100% = 24,2 GW 100% = 95.532 GWh
Hydraulic
43%
Lignite
33%
Liquid Fuels
0%Hard Coal
2%
Natural Gas
22%
Hydraulic
48%
Lignite
31%
Natural Gas
17%
Hard Coal
1%
Liquid Fuels
3%
Total installed capacity of the plants that will be privatized, is over 16 GW
Installed Capacity
MW
Source: EÜAŞ, Privatization Administration
EÜAŞ Total
23,976
Not considered
for privatization
68%
32% 7,627
Total of plants
that will be
privatized
16,359
River
142
Hydro
3,687
Thermal
12,524
Number of
Plants
Minimum
ins.capacity
MW
Maksimum
ins.capacity
MW
18
50
1,440
27
26.2
702.6
53
<0.1
51.2
98
<0.1
1,440
21
6
2,405
119
<0.1
2,405
Going to be privatized
Atatürk
Karakaya
Keban
Berke
Borçka
Sır
Batman
Muratlı
Dicle
Torul
Kralkızı
Kadıncık 1
Seyhan 1
Kadıncık 2
Ş.Urfa
Manavgat
Karacaören 2
Kepez 1
Seyhan 2
Kepez 2
Yüreğir
▪ Total of plants that are going to
be privatized, makes up the
68% of EÜAŞ installed
capacity and 39% of total
installed capacity in Turkey
▪ Plants that are not planned to
be privatized:
2,405.0
1,800.0
1,330.0
510.0
300.0
283.5
198.0
115.0
110.0
103.2
94.5
70.0
60.0
56.0
51.0
48.0
46.4
26.4
7.5
6.0
6.0
Name
Installed Cap.
MW
Large Plants Small Plants
Agenda
▪ Overview of Electricity Generation Company
ion Assets Privatization Process
▪ Privatization Portfolio
-Priority Power Plants
-Plants with Capasity Expansion Potential
-Design of Portfolio Groups
-Portfolio Groups
▪ Important Issues
▪ Conclusion
Privatization Portfolio
Source: EÜAŞ -2010
278
189170169160159138128124120908576756969625654483832322726
703
500
Hirfa
nlı
Me
nze
let
Kılıç
ka
ya
Kö
klü
ce
Kü
rtün
Ke
sik
kö
prü
Do
ğa
nke
nt
Su
at U
ğu
rlu
De
mirk
öprü
Ad
ıgü
ze
l
De
rbe
nt
ka
pu
luka
ya
Ke
me
r
Yenic
e
Ka
raca
öre
n-1
Ça
mlıg
öze
Alm
uş
To
rtum
Ça
tala
n
Sa
rıya
r
Ge
ze
nd
e
Asla
nta
ş
Ha
san
Uğ
urlu
Gö
kçe
kaya
Ka
rka
mış
Özlü
ce
Altın
ka
ya
Installed Capacity
MW
100 MW +
122 117 139149 128 122 150
300
129 138
434
261
171189
480488 658
274
763
53
366
497 650461
5051.722
2010 Gross Generation
GWh
12 hydroelectric power plants out of 27 have installed capacity over 100 MW
Source: EÜAŞ
Kürtün 85 MW
Almus 27 MW
Köklüce 90 MW
Çamlıgöze 32 MW
Kılıçkaya 120 MW
Karacaören-1 32 MW
Gökçekaya 278.4 MW
Sarıyar 160 MW
Kesikköprü 76 MW
Kemer 48 MW
Kapulukaya 54 MW Hasan Uğurlu 500 MW
Suat Uğurlu 69 MW
Derbent 56.4 MW
Altınkaya 702.5 MW
Adıgüzel 62 MW
Demirköprü 69 MW
Doğankent 74.5 MW
Tortum 26.2 MW
Menzelet 124 MW Hirfanlı 128 MW
Aslantaş138 MW Gezende 159.3 MW
Çatalan 168.9 MW
Özlüce 170 MW
Karkamış 189 MW
Yenice 37.8 MW
0-100 MW
100-200 MW
200 MW +
Kızılırmak
Yeşilırmak
Fırat Seyhan
Ceyhan
Aksu B. Menderes
Gediz
Göksu-
Ermenek
Sakarya
Peri çayı
Harşit çayı
High-capacity hydro plants are concentrated in central and eastern
regions of Turkey
Hopa 50 MW
Aliağa
180 MW
Orhaneli 210 MW
Bursa D.Gaz 1432 MW
Çatalağzı
300 MW
Çan
320 MW
Tunçbilek 365 MW
Seyitömer 600 MW
Yeniköy 420 MW
Kemerköy 630 MW
Yatağan 630 MW
Kangal
457 MW
Ambarlı F.Oil 630 MW
Ambarlı D.Gaz 1351 MW
Soma A 44 MW
Hamitabat
1156 MW
A. Elbistan A 1355 MW
A. Elbistan B 1440 MW
0-500 MW
500-1000 MW
1000 MW +
Soma B 990 MW
Most of the 18 thermal plants are located in western regions of Turkey
Source: EÜAŞ
The largest thermal power plants are using natural gas.
50
180
210
300
320
365
420
457
600
630
630
630
1.034
A. ELBİSTAN A 1.355
BURSA D.GAZ
SOMA A+B
HAMİTABAT
1.432
A. ELBİSTAN B 1.440
YATAĞAN
SEYİTÖMER
KEMERKÖY
HOPA
ALİAĞA
ORHANELİ
1.120
AMBARLI-D.GAZ 1.351
AMBARLI-F.OİL
ÇATALAĞZI
ÇAN
TUNÇBİLEK
YENİKÖY
KANGAL
Total:
Installed Capacity
MW
Source: EÜAŞ
Lignite
Natural Gas
Fueloil
Hard Coal
283
0
279
4.802
6.804
7.769
7.788
4.178
3.159
1.543
1.246
2.071
1.977
3.587
3.525
2.121
2.278
2009-2010 average generation
GWh
2010 data was used 58.391 GWh
8.191
518
Generation Assets Privatization Process
Explanation
▪ 50 run-of-river plants have been tendered in
19 portfolio groups
Current status
▪ 9 portfolios have transferred to the private
sector. Rest of the portfolios are expected
to be transferred in the coming months.
53 small hydrolic
plants
▪ 4 priority power plants (all thermal) are to
be privatized before the portfolio groups Priority assets
privatization
▪ 12 thermal and 27 hydrolic power plants
are to be privatized in 9 portfolios
▪ Strategy has been determined and final
arrangements are in progress
Portfolio groups
▪ Generation assets of 141 MW have been
privatized for $510 million
▪ Completed
ADÜAŞ
▪ The privatization tender of Hamitabat
Combined Cycle Natural Gas Plant with
1,156 MW installed capacity was launched
on March 21, 2011. Six potential investors
had pre-qualified and the deadline for the
bids was September 23, 2011, but the
tender is cancelled. For the others; strategy
has been determined and final
arrangements are in progress.
1
2
3
4
Priority Power Generation Plants
Source: EÜAŞ.
(1) Installed capacity has been incresed from 1,120 MW to 1,156 MW followed by the rehabilitations works between 2007 and 2010.
These four power plants represent 29% of gross
generation of EÜAŞ thermal plants as of 2010
Plant Fuel Type Location
Installed Capacity
(MW)
2010 Gross
Generation
(GWh)
Hamitabat Natural Gas Lüleburgaz, Kırklareli
Kangal Lignite Kangal, Sivas
Seyitömer Lignite Seyitömer, Kütahya
Soma A-B Lignite Soma, Manisa
Total 3.247 15.583
1.034
600
457
1.156(1)
Priority Power Plants which will be privatised in advance are not included in the Portfolio Groups.
10
3.897
3.623
2.313
5.750
210
600
365
1.034
100
150
400
500
Plant Name Fuel Type Location
Installed Capacity
(MW)
Feasible Additional
Capacity (MW)
Soma Lignite Soma, Manisa
Tunçbilek Lignite Tunçbilek, Kütahya
Seyitömer Lignite Seyitömer, Kütahya
Orhaneli Lignite Orhaneli, Bursa
Total 2,209 1,150
Plants With Capacity Expansion Potential
Lignite reserves to support additional capacity in Soma, Tunçbilek, Seyitömer and Orhaneli coal mines
A total of 1.150 MW additional capacity is feasible for these 4
thermal plants
SOURCE: McKinsey Strategy Report
Design of Portfolio Groups
Portfolios have been designed to accomodate different interests and attract a diverse group of
prospective investors
▪ Geographical location has been considered in order to preserve operational synergies and economies of
scale
▪ Certain power plants have to be grouped together due to some characteristics (common personnel, same
subsidiary, common mining field, etc.)
▪ Hydrolic power plants on the same river have been placed in the same portfolio to allow integrated
management and operational efficiencies
▪ 9 portfolios, 356 MW to 2.795 MW in size have been formed:
– 3 portfolios of themal power plants only
– 2 mixed portfolios of themal and hydrolic plants
– 4 portfolios of hydrolic power plants only
Geographical distribution of 9 portfolio groups
Kürtün 85 MW
Almus 27 MW
Köklüce 90 MW
Çamlıgöze 32 MW
Kılıçkaya 120 MW
Karacaören-1
32 MW
Gökçekaya
278 MW
Sarıyar
160 MW Kesikköprü
76 MW
Kemer
48 MW
Kapulukaya
54 MW Hasan Uğurlu 500 MW
Suat Uğurlu 69 MW
Derbent 56 MW
Altınkaya 703 MW
Adıgüzel 62 MW
Demirköprü
69 MW
Doğankent 75 MW
Tortum 26 MW
Menzelet
124 MW
Hirfanlı 128 MW
Aslantaş 138 MW
Gezende 159 MW
Çatalan 169 MW
Özlüce 170 MW
Karkamış
189 MW
Yenice
38 MW
Kızılırmak
Yeşilırmak
Fırat
Seyhan
Ceyhan
Aksu
B. Menderes
Gediz
Göksu -
Ermenek
Sakarya
Peri Çayı
Harşit Çayı
5
8
7
9
4
6
Aliağa
180 MW
Orhaneli
210 MW
Bursa D.Gaz
1432 MW
Çatalağzı
300 MW
Yeniköy 420 MW
Kemerköy 630 MW
Yatağan 630 MW
Kangal 457 MW
Ambarlı F.Oil 630 MW
Ambarlı D.Gaz 1351 MW
A. Elbistan A 1355 MW
A. Elbistan B 1440 MW
Tunçbilek
365 MW
1
3
2
3
3
Hidroelektrik
Santraller
Termik Santraller Portföy Grupları x Portföy Numarası
SOURCE: EÜAŞ.
Harşit
75 MW
Plant Fuel Type Location/River
Installed Capacity
(MW)
2010 Gross Generation
(GWh)
A. Elbistan A Lignite Afşin, K.Maraş
A. Elbistan B Lignite Afşin, K.Maraş
Ambarlı D.Gaz Natural Gas
Ambarlı, İstanbul
Ambarlı F.Oil Fuel-Oil Ambarlı, İstanbul
Aliağa Natural Gas Aliağa, İzmir
Çan Lignite Kangal, Sivas
Tunçbilek Lignite Tunçbilek, Kütahya
Bursa D.gaz Natural Gas Ovaakça, Bursa
Orhaneli Lignite Orhaneli, Bursa
Gökçekaya Hydro Sakarya
Sarıyar Hydro Sakarya
Yenice Hydro Sakarya
Kemerköy Lignite Milas, Muğla
Yatağan Lignite Yatağan, Muğla
Yeniköy Lignite Milas, Muğla
Demirköprü Hydro Gediz
Adıgüzel Hydro Büyük Menderes
Kemer Hydro Büyük Menderes
Karacaören-1 Hydro Aksu
Gezende Hydro Göksu, Ermenek
1.440
1.355
159
32
48
62
69
420
630
630
38
160
278
210
1.432
EÜAŞ Privatisation: Portfolio Groups (1)
1
2
3
4
5
630
1.351
300
365
320
180
Source: EÜAŞ.
(1) Four priority plants to be privatised in advance and Hopa, which is non-operational since 2003, are not represented in the above portfolios. Additionally, Çatalağzı, which to be privatized separately, is taken out of
Portfolio 3.
Total:
2,795
Total:
1,981
Total:
865
Total:
2,118
Total:
2,050
13
Total:
8,003
Total:
4.052
Total:
9.270
Total:
7.218
Total:
9.736
7.694
2.042
62
7.941
1.659
2.141
251
128
366
505
1.174
7.098
53
149
122
129
138
1.308
2.599
2.720
Plant Fuel Type Location/River
Installed Capacity
(MW)
2010 Gross Generation
(GWh)
Altınkaya Hydro Kızılırmak
Derbent Hydro Kızılırmak
Hirfanlı Hydro Kızılırmak
Kesikköprü Hydro Kızılırmak
Kapulukaya Hydro Kızılırmak
Hasan Uğurlu Hydro Yeşilırmak
Suat Uğurlu Hydro Yeşilırmak
Almuş Hydro Yeşilırmak
Köklüce Hydro Yeşilırmak
Kılıçkaya Hydro Yeşilırmak - Kelkit
Çamlıgöze Hydro Yeşilırmak - Kelkit
Çatalan Hydro Seyhan
Aslantaş Hydro Ceyhan
Menzelet Hydro Ceyhan
Karkamış Hydro Fırat
Doğankent Hydro Harşit Çayı
Kürtün Hydro Harşit Çayı
Tortum Hydro Tortum Gölü
Özlüce Hydro Peri Suyu
EUAŞ Privatisation: Portfolio Groups (1) (Cont’d)
6
7
8
9
Source: EÜAŞ.
(1) Four priority plants to be privatised in advance and Hopa, which is non-operational since 2003, are not represented in the above portfolios.
54
76
128
56
703
Total:
1,017
Total:
838
Total:
620
Total:
356
189
124
138
169
170
26
85
75
32
120
90
27
69
500
14
Total:
3.380
Total:
2.378
Total:
1.248
Total:
2.267 150
171
274
300
1.372
139
488
480
117
434
1.722
461
658
763
497
650
133
189
275
Agenda
▪ Overview of Electricity Generation Company
▪ Privatization Portfolio
-Priority Power Plants
-Plants with Capasity Expansion Potential
-Design of Portfolio Groups
-Portfolio Groups
▪ Conclusion
Important Issues
Important Issues
The Privatisation Administration and Ministry of Energy and Natural Resources are currently
working to address the following key considerations.
Natural gas is supplied by BOTAŞ,
It is planned that the power plants will handover with coal areas.
Share sale of Portfolio Companies to be incorporated
Portfolio Companies will have Operating Rights for HPPs and
ownership of the Thermal assets
Fuel Supply
Natural Gas
Lignite / Coal
Preparatork work ongoing for signing water usage agreements with
DSİ. Water
Transaction Structure
15
Environmental Compliance Investors will have enough time for completion of the
environmental investments.
Agenda
▪ Overview of Turkish Electricity Generation Company
▪ Privatization Portfolio
-Priority Power Plants
-Plants with Capasity Expansion Potential
-Design of Portfolio Groups
-Portfolio Groups
▪ Important Issues
▪ Conclusion
542
469
334
309
281
169
147
134
111
86
Germany
France
United Kingdom
Italy
Spain
Turkey
Poland
Sweden
Netherlands
Finland
Attractive Market Fundamentals
Significant Market Size (2010)
Annual Consumption (TWh) (1)
High Growth Potential …
Consumption Growth Rate (2)
… From a Low Starting Point (2010)
Per Capita Power Consumption (3)
Expected to overtake UK
and become a top 3 market by
2020-2025
Given the size and current growth rate and potential, Turkish electricity market is one of the most attractive electricity markets in
Europe, expected to become a top 3 market by size in the next 10-15 years.
6.0
6.3
6.6
6.7
7.4
7.9
8.0
14.3
15.7
2.2Turkey
Denmark
Czech
Republic
Germany
Netherlands
France
Austria
Belgium
Sw eden
Finland
Average: 8.8
1
Source: EIU. (1) Net consumption for Turkey in 2010 is calculated by using 2009 net consumption figure and 2009-2010 gross consumption growth rate. For other countries EIU forecasts are used.
(2) Growtth rates are based on 2006 – 2010 period. (3) Net consumption for Turkey in 2010 is calculated by using 2009 net consumption figure and 2009-2010 gross consumption growth rate Per capita consumption
is calculated by dividing this number by population. For other countries EIU forecasts are used.
%4.6
%2.6
%1.8
%1.7
%1.6
%1.6
%1.2
%1.1
%0.6
%0.3
Turkey
Spain
Poland
Greece
Austria
Bulgaria
Czech Republic
Romania
Slovakia
Hungary
Average: %1,7
Conclusion
The Turkish Power Market represents a strong and sizeable growth opportunity for strategic and financial players. ▪ Turkey has one of the largest and fastest growing power markets in the CEEMEA * region ▪ Electricity demand growth is expected to outpace real GDP growth as a result of population growth,
urbanisation, industrialisation and economic growth ▪ Turkey, as the sixth largest electricity generating country in Europe, has a per capita power
consumption level well below Western European markets ▪ As well as enhancing competition and efficiency, the ongoing liberalisation process is also expected
to bring the Turkish power market in line with EU market structures ▪ Opportunities to create vertically-integrated operations in the sector are expected to increase ▪ Share of private players in the market is increasing ▪ EÜAŞ privatisation process is of critical importance due to the contribution it will make to
mobilise the growth potential of the sector .
▪ EÜAŞ generation assets’ privatisation process reflects a structure which will address the ongoing issues in the energy sector and serve the objectives of the privatisation. As such, EÜAŞ privatisation is an important opportunity for the investors
▪ With this perspective, we: – Have selected the priority assets of EÜAŞ and formed the portfolio groups, and – Have the determined the right strategy to tackle key issues
▪ We believe that the privatization process of EÜAŞ assets will be beneficial in ensuring supply security, enhancing efficiency and competition in the Turkish electricity market structure and activities
* CEEMEA: Central and Eastern Europe, Middle East, Africa
