RWE to invest EUR900m in Eastern Europe, Turkey

RWE, the German power generator and distributor, plans to invest EUR900m ($1.22bn) in central and eastern Europe including Turkey by 2013, said Andreas Radmacher, chief executive of the company’s Turkey unit.
 
According to Bloomberg, the figure includes EUR500m, RWE is spending for its first investment in Denizli, Turkey to build a 775 MW gas fired power plant with Istanbul-based Turcas Petrol, which is envisaged to come on stream at the end of 2012, Radmacher said at a news conference in Istanbul.
 
RWE has 70 per cent stake and Turcas 30 per cent in the joint venture, he said.
 
 “Turkey is not only a bridge between energy producing Caspian and consumers in Europe but also it itself is a growth market,” Radmacher said. “We are open to other partnerships because our partnership with Turcas isn’t exclusive,” he said.
 
Essen, Germany-based RWE will also start an electricity sales business in Turkey “soon,” Radmacher said. Plans to build an imported coal fired power plant with Turcas at the site of Petkim Petrokimya Holding AS, Turkey’s biggest petrochemicals manufacturer part owned by Turcas in western Izmir, is still under consideration, Radmacher said.
 
RWE, the second largest utility in Germany, is also interested to expand investments with Turcas or other partners in power plants running on coal, gas or hydro resources, Radmacher said.
 
Turkey’s asset sales agency will start announcing auctions to sell power plants which have a total capacity of 16 GW, head of the agency Ahmet Aksu said last month.
 
The first power plant to be sold is an 1120 MW gas fired plant at Hamitabat in northwestern Thrace region, he said. RWE will “absolutely look into the state asset sales,” Radmacher said. The company may also buy privately held power plants in Turkey should there be opportunities, he said.
 
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