AES Entek

Placing a premium on alternative resources, AES Entek aims to raise its market share through new investments and acquisitions.

AES Entek, a joint venture partnership with the AES Corporation, currently has a total installed capacity of 364 MW. This includes two natural gas combined cycle plants with a total capacity of 300-MW (of which one is located in Kocaeli and the other one in Bursa), one 2-MW gas motor-based cogeneration facility and three hydroelectric power plants with a total capacity of 62 MW (of which two are located in Karaman and one in Samsun).

With the addition of 7,000 MW new generation capacity in 2013, Turkey’s total installed capacity grew to 64,050 MW, of which 31,500 MW is owned and operated by the private sector. In 2013, AES Entek’s consolidated revenues totaled TL 341.6 million.

The three hydroelectric power plants of AES were added to the portfolio in 2013. The investment process for a green-field co-generation plant with a total installed capacity of circa 225-MW to be built next to the Tüpraş facilities in Kırıkkale is ongoing and the natural gas interconnection approval from Botaş is currently being awaited. 625 MW imported coal fired power plant project in Adana, a %50-50 partnership with Oyak, also continues.

While AES Entek’s natural gas power plants are not base load power plants, they have a flexible operating regime which enables them to mitigate market risks and remain competitive. Direct sales to busbars and steam customers bring distinctive advantages. The Company’s natural gas power plants have begun providing secondary frequency control services to TEİAŞ (Turkish Electricity Transmission Company), making the Company one of only a few to do so. This has generated significant income. Similarly, Eltek Wholesale Company’s ability to step in when system prices are low and purchase electricity from various sources, contributes AES Entek’s competitiveness. In 2013, Eltek more than doubled its customer sales volume 2.5 times.

The flexibility of AES 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 its customers, thereby minimizing generation and income risks.

AES Entek received the Golden Voltage Electricity Sector Achievement Award at the Gas & Power IV Turkey Energy Summit. AES Entek is pursuing a range of expansion opportunities via merger and acquisitions as well as a development of new generation plants in order to increase its market share in 2014 and have a diversified generation portfolio consisting of various fuel sources.