Verbund Considers Increasing Investments in Turkish Hydro Power

Verbund AG (VER), Austria’s biggest utility, is considering whether to increase its investments in Turkish hydropower, according to a company official.

The additional investment depends on Turkey allowing more attractive prices with the liberalization of electricity markets later this year and would be carried out via its Enerjisa Enerji Uretim AS, said the official, declining to be identified because the person isn’t allowed to speak publicly about the plans.

Enerjisa, which is jointly owned by Vienna-based Verbund and Istanbul-based Haci Omer Sabanci Holding AS (SAHOL), aims to have capacity of 5,000 megawatts by 2015. Should Verbund invest more in Turkey, it would be willing to double that amount, according to the official.

Stories on Verbund holding talks on selling its 50 percent of Enerjisa to EON Ruhrgas AG may have been overinterpreted, according to the official. Reuters reported the talks Aug. 17, citing four unidentified people close to the deal.

Verbund Chief Executive Officer Wolfgang Anzengruber told journalists in Albania this week that while there were companies interested in Verbund’s Enerjisa stake, the company didn’t want to sell, Austria Press Agency said today.

To contact the reporter on this story: Zoe Schneeweiss in Vienna at zschneeweiss@bloomberg.net

To contact the editor responsible for this story: Stephen Foxwell at sfoxwell@bloomberg.net