Turcas Petrol AS plans to invest in renewable energy to diversify its assets and take advantage of Turkish government incentives for clean power.
The company has earmarked $65 million for a 16-megawatt geothermal plant in the western province of Aydin with its Ankara-based partner BM Muhendislik, Chief Executive Officer Batu Aksoy said Wednesday. It has also bid for licenses for four wind farms with a total capacity of 116 megawatts.
Turcas, a fuel retailer and electricity producer, has studied expansion into renewables in the past. It applied for wind licenses at six Turkish sites in 2007, and wasn’t selected. It has also drilled in several provinces to find geothermal resources. By adding clean-energy capacity, the company would qualify for guaranteed power-purchase rates from the state.
“As a key energy player in the market, we would like to diversify our energy production mix,” Aksoy told reporters in Istanbul, where Turcas is based. “Renewable energy is the right investment for this because of government incentives.”
The planned geothermal plant is scheduled to come on stream in 2017. The company already operates a 775-megawatt gas-fired power station in Denizli province with RWE AG.
Turkey guarantees to buy wind energy and hydropower at 7.3 cents a kilowatt-hour, geothermal electricity at 10.5 cents a kilowatt-hour and solar and biomass-fired power at 13.3 cents.