PREAMBLE

The total energy generation in Turkey reached 259.61 billion kWh in 2015 with an increase by 5.60% compared to 2014 while the energy consumption became 263.83 billion kWh with a 3.30% increase.

 

The peak demand, which was 41,003 MW in 2014, on the other hand, increased by 5.6% and took place as 43,289 MW in 2015. 

 

With commissioning of new power plants, our country’s installed power has reached up to 73,147 MW 2015.

 

Annual increase in electricity demand in developing countries is usually considered to be 50% more than annual development of economy. Accordingly, increase in power demand was expected to be about 4-4.5% in our country because economic growth has become 3% in 2015. However, increase in electricity consumption has become 3.3% while power generation has increased by 5.6% in the same year. This caused decreases in sales prices of electricity.

 

This has posed problems to power generating institutions.

 

Since energy investments are planned on the basis of long-term economic forecasts economic growth of our country is very important to energy sector. We hope that our company will achieve desired economic growth in 2016 and 2017 and energy market will not be affected adversely of this situation anymore.

 

Our Company has started selling all of its renewable production at a price of 7.3 US cents/kWh in scope of YEKDEM in 2016 in order not to be affected from such adverse conditions.

 

Our Company has continued energy generation in 2015 with its existing facilities. AKBUK II WPP with an installed capacity of 20 MW was commissioned. Licensing studies of CANKAYA HEPP with installed power of 93.5 MW have almost been completed and its construction works are planned to start at the end of 2016.  Works regarding permits of CAYPINAR WPP with installed capacity of 24 MW have been initiated and its construction phase is planned to commence in the last quarter of 2016.

 

PESQUESHIT HEPP project with installed capacity of 28 MW was commissioned in the May 2015 within scope of Fan River Basin Hydroelectric Power Plants project of our overseas subsidiary AYEN AS ENERGJI SHA.  Electricity generated in this plant is sold via our Power Trade Companies established in Albania, Slovenia, and Serbia.

 

Investment of FANGUT HEPP with installed capacity of 63 MW has continued within same project. It is planned to be commissioned in 2017.

 

As AYEN ENERJI, we are continuing with our current investments as well as our operations towards new investment opportunities.

 

Fahrettin Amir ARMAN

General Manager