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We are focusing our next investments on renewable energy: Sabanci Holding Energy

Sabanci Holding Energy Group President Zaimler stated that they are planning their future investments in renewable energy in the energy sector, and said, “We have 565 megawatts of wind power plant investments that we currently envision to be made.”

Sabanci Holding Energy Group President Kivanc Zaimler, the guest of Anadolu Agency (AA) Energy Desk, thanked the sector employees who provided uninterrupted energy service to the citizens during the period of the new type of coronavirus epidemic.

Zaimler recalled that 2020 was a year when demand fluctuated greatly, and stated that demand for housing increased and industrial demand decreased in the first periods of the epidemic, but in the last quarter of 2020, especially in the industry, energy demand increased.

Stating that the demand for electricity continued with a small growth compared to the previous year, Zaimler said, “This year we see that the increase continues in the same direction. In this period, the desire of the public and private sector to continue their works was important. This is a business that we, as Sabanci Holding and our affiliates, enter equally. Therefore, it is necessary to prepare for the crises before the crisis.”

Zaimler emphasized that the management capability in the operation, the measures taken in the portfolio according to exchange rates and commodity prices today keep them on a healthy balance sheet and they have overcome the crisis well.

Noting that the operating profit of the company increased by 15% and its net profit increased by 20% in 2020 compared to the previous year, Zaimler emphasized that predictability in the sector is very important and should be increased.

New trends in the industry are like “pole star”

Saying that electricity is the symbol of prosperity, Zaimler said that urbanization, technology, environment and sustainability are more prominent in the world and energy is at the center of all these issues.

Reminding that the United Nations has 17 goals in the field of sustainability, Zaimler said:

“These are the goals we have taken for ourselves as polar stars. Environment, zero carbon footprint. There are 3 main branches of the roadmap at the country level. Increasing renewable energy, energy efficiency and strengthening grids. Only the employment created by them is in a situation that can positively affect the employment all over the world. This picture is very similar to Turkey. The most important issue in the energy sector is to provide predictability. The glass has an empty and full side. Today we are coming to the last days of winter in Turkey. We have never talked about the security of supply. Will electricity and natural gas be cut off due to weather conditions? We never talked about that. There is a diversity of resources. Policies put in place today support the articles of ‘increasing renewable energy, energy efficiency and strengthening the grids.”

Digitalization and R&D stand out

Zaimler stated that as Enerjisa Distribution Companies, the investment amount foreseen as ₺8.5 billion in the 2016-2020 period was realized at the level of ₺12 billion with an increase of 40%.

Stating that the increase in investment increased depending on the need, Zaimler stated that these investments were reserved for the growth of the network and transformer.

Stating that urbanization is one of the most important driving forces of this, Zaimler said, “We foresee the investments in the electricity distribution sector as ₺15 billion in the tariff period of 2021-2025. I can say that the need especially in rural areas is high.”

Stating that customer satisfaction will become more prominent in this tariff period, Zaimler noted that performance criteria will be taken into account, and practices will be implemented to increase transparency through reward and penalty applications.

Zaimler, who was elected as the Chairman of ELDER Board of Directors at the General Assembly of Electricity Distribution Services Association (ELDER) held this week, said that they will continue to contribute to the sustainability of the sector.

Zaimler pointed out that there is approximately 96 thousand megawatts of installed power in Turkey today.

Zaimler, reminding that this figure was 44 thousand megawatts 10 years ago, stated that today 51% of the installed power consists of renewable resources.

Pointing out that they, as Sabanci Holding, identify renewable energy as one of the growth areas for a sustainable future, Zaimler said, “We have a very balanced portfolio in electricity generation. The percentage overlaps with Turkey. Therefore, since we foresee that Turkey’s energy growth will come from renewables, we have planned all our future investments on renewables. We already have 565 megawatts of wind investments that we foresee to be made, which we are actively involved in. 250 megawatts each is within the scope of Renewable Energy Resource Areas (YEKA) in Canakkale and Aydin, and 65 megawatts in Kayseri, but we are seriously looking at additional capacities and technologies.”

“I think the YEKA model will continue in the sun and in the wind”

Zaimler said that the words local, renewable and national are widely heard in Turkey’s sustainability story.

Zaimler, who reminded that the company was bidding for 500 megawatts in the total 1000 megawatt wind YEKA tender, continued as follows:

“We will make this investment in the upcoming period. It is very pleasing that there is intense demand for YEKA auctions, in terms of bringing more and smaller investors into the game in more fields. An important issue is the financing of this. Because these projects should be implemented at the end of the day. In other words, the facilities there must generate energy, those panels must be working, those propellers must be installed. I think that the YEKA model will continue both in the sun and in the wind in the upcoming period. The realization and successful operation of these first YEKA auctions will also support future projects. Therefore, as a private sector representative, whatever I expect from the public, I would simply say ‘predictability’.”

“Conditions are not suitable for the public offering of Enerjisa Uretim”

Zaimler stated that the current conditions are not very suitable regarding the public offering process of Enerjisa Uretim company.

Emphasizing that their priority last year is to move Enerjisa Uretim company to where they want operationally and financially, Zaimler said, “We are happy that we have completed this at the end of 2020 and today Enerjisa Uretim has become a company that pays dividends. Obviously, a better future awaits us after today. Together with our partner, we will evaluate all strategic alternatives, including public offering. We will follow economic developments, company priorities and strategic alternatives. We will consider all options on how to finance growth.”

Source: AA / Translated by Irem Yildiz

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