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Tag: electricity market

  • ESB International signs €30m Turkish deal

    ESB International signs €30m Turkish deal

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    John McSweeney, head of Innovation at ESB, Serdar Bilgiç, head of energy generation at Unit and Tánaiste and Minister for Foreign Affairs and Trade, Eamon Gilmore T.D pictured at the announcement that ESB International has won its first contract in Turkey valued at ¤30 million.

    Colm Keena

    ESB International has entered into a €30 million, six-year partnership with Turkish investment company Unit in the State-owned company’s first venture in the growing economy.

    The 50-50 joint venture deal was announced at a ceremony in Istanbul yesterday attended by Tánaiste and Minister for Foreign Affairs and Trade Eamon Gilmore, who is leading a trade mission to the country.

    Power station

    The operation and maintenance of the Yeni Elektrik power station, south west of Istanbul, is a large milestone in the development of ESB International in Turkey, said ESB head of innovation, John McSweeney. “This is our first project in Turkey and we are hoping to develop new opportunities here in the future with our partners,” he said.

    The ESB has set itself the objective of doubling its income from its foreign operations over the coming five years and, with that in mind, has opened offices in Turkey, Singapore and South Africa.

    The rapidly growing Turkish market is expected to see energy demands grow by about 6 per cent per year over the coming period, creating considerable opportunity for those involved in the energy sector. The Ankara government has ambitious plans to dramatically increase renewable energy production, financed by private investment, as well as to invest in a large number of conventional power plants.

    Energy demands

    Addressing the ceremony in Istanbul, Mr Gilmore said ESB International had the skills required to help Turkey to meet its fast-increasing energy demands and he wished the company every success.

    ESB International also announced it had completed a major stage in an energy project it is managing in Tanzania, with the switching on of a new 132kV submarine interconnector from the African country to Zanzibar. The development more than doubles the transmission capacity currently available.

    Only 15 per cent of the Tanzanian population is connected to the energy grid. A $200 million (€153 million) project, funded by the US, is targetting the development of power transmission in Tanzania and ESB International’s work there is part of that project.

    via ESB International signs €30m Turkish deal – Business News | Latest News Stories | The Irish Times – Thu, Apr 11, 2013.

  • EON in Talks to Enter Turkey, India as Profit at Home Drops

    EON in Talks to Enter Turkey, India as Profit at Home Drops

    EON AG (EOAN), Germany’s biggest utility that plans to expand in Brazil where energy demand is expected to grow faster than in Europe, is in talks with potential partners to enter Turkey and India.

    eon dpa grEON expects results from the discussions about possible agreements in the course of this year, Chief Executive Officer Johannes Teyssen said in a letter to shareholders today.

    Germany’s largest utilities are overhauling operations after the Fukushima disaster in Japan last March drove Chancellor Angela Merkel to order the permanent closing of all nuclear plants by 2022. The shutdown of nuclear stations in EON’s home market trimmed earnings by 2.5 billion euros ($3.3 billion) in 2011 and drove the Dusseldorf-based utility to announce a 15 billion-euro divestment program, job cuts and plans to expand into new markets such as Brazil.

    It has also identified Turkey and India as attractive markets, EON Chief Financial Officer Marcus Schenck said today in Dusseldorf.

    “Turkey is the market we’re most familiar with,” Schenck said. While the utility could enter Turkey alone, it prefers to do so with a partner, he said.

    EON is also seeking a local partner for entering the market in India, which is “much more difficult” than Turkey, he said.

    EON agreed to buy 10 percent of Brazilian billionaire Eike Batista’s MPX Energia SA and set up a power-generation joint venture in January. The two companies plan to jointly generate 20,000 megawatts in Brazil and Chile and will each own 50 percent of the business.

    via EON in Talks to Enter Turkey, India as Profit at Home Drops – Bloomberg.

  • Political Endowments and Electricity Market Regulation in Turkey: An Institutional Analysis

    Political Endowments and Electricity Market Regulation in Turkey: An Institutional Analysis

    Turkey has been going through a liberalization process in its electricity market over the last decade. So far, the regulatory content of the market reforms has been in the center of attention in the literature, to the negligence of regulatory governance. However, recent studies, which applied the theoretical insights of new institutional economics to utilities regulation, have demonstrated that political endowments of the country draw the boundaries to which extent such regulatory content can be effectively implemented. In line with these studies, this paper adopts an institutional approach and attempts to identify the political endowments of Turkey in order to further analyze whether the market reforms succeeded in bringing about sufficient checks to cure the institutional problems. In other words, the paper takes a picture of the overall regulatory arena. The results show that the current regulatory structure, especially government-regulator relations, fails to meet good regulatory governance criteria. The paper also provides some policy suggestions.

    Paper in .pdf : d.repec.org/n?u=RePEc:rsc:rsceui:2011/08&r=ene

    via Political Endowments and Electricity Market Regulation in Turkey: An Institutional Analysis.