Total installed capacity of 364 MW
Koç Group’s power generation company, Entek, currently has a total installed capacity of 364 MW. This includes two natural gas combined cycle plants with a total capacity of 300 MW (in Kocaeli and Bursa), one 2 MW gas motor-based cogeneration facility (Istanbul Koç University) and three hydroelectric power plants with a total capacity of 62 MW (two in Karaman and one in Samsun).
With the addition of 5,500 MW generation capacity in 2014, Turkey’s total installed capacity grew to 69,516 MW, of which 38,191 MW is owned and operated by the private sector.
As of year-end 2014, Entek has a 1.1% share in total installed capacity and 0.95% in total electricity generation of the private sector. As of year-end 2014, consolidated revenue stood at TL 395 million.
Upon the decision of our partner, AES, to exit the Turkish market, its shares were acquired from the other main shareholders, Koç Holding and Aygaz. In addition to its power plants in operation, Entek also has a 50% share in a 625 MW imported coal-fired power plant project. The Company also acquired a 0.05% stake in EPIAŞ, the newly established company to operate the Energy Exchange.
While Entek’s natural gas power plants are base load power plants, they also have a flexible operating regime that enables them to mitigate market risks and remain competitive. Direct busbar sales and steam customers from the Kocaeli plant bring distinctive advantages. The Company’s natural gas power plants provided secondary frequency control services, generating significant income. In 2014, similarly Eltek, the Company’s wholesale subsidiary, contributes to Entek’s competitiveness through its ability to step in when system prices are low and purchase power from various sources.
The flexibility of Entek through Eltek is a significant mitigant for the low system prices and natural gas take-or-pay risks by purchasing electricity from the system and selling it to customers, thereby minimizing production and income risks.
2015 and beyond
Entek, by focusing on alternative resources, targets to pursue organic and inorganic investment opportunities and increase its market share.