One of Turkey’s biggest industrial conglomerates has decided to inject substantial additional investment into its power generation arm, in an effort to double the annual sales of the business as a whole over the next six years.

Sabanci (İMKB: SAHOL) is investing another $2bn into power generation and will endeavour to increase the proportion of revenues from the sphere of electricity to 25 per cent from its current rate of nine per cent by 2015.
Sabanci HQ
 “Energy is one of the keys to Turkey’s future growth and we see a lot of opportunities from this side of our business,” said Guler Sabanci, Sabanci’s chairwoman, in an interview with the Financial Times.

“The country has not invested enough in power generation and we need to do more if we are to meet [GDP] targets,” Ms Sabanci said, adding that power consumption in the country was growing at a rate 50 per cent higher than overall economic demand.

Foremost in the strategy is a joint venture with German utility E.ON, who are investing $2bn, to bring in a total of $4bn between both groups.

Sabanci and Eon intend by 2020 to operate between them in Turkey power stations with potential output of 8.3 GW, with the new figure replacing the previous goal of 5.3 GW.

The $4bn extra spending by the two companies comes on top of $8.2bn of investments either spent or committed on power projects by Sabanci, together with Verbund and Eon, over the past few years.

Most of the money has been directed to new stations fuelled by gas or coal, or which use water-driven hydroelectric processes.

Sabanci generated 1.8 GW of energy in Turkey last year but this will rise significantly as the company has 11 new power plants coming on stream over the next two years.

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