08 Sep 2021 TELECOM GIANT TURKCELL ACCELERATES INVESTMENTS IN CLEAN ENERGY WITH İZMİR KARADAG WIND POWER PLANT ACQUISITION
In line with the target of meeting its electricity demand from renewables by 2030 and becoming a carbon-neutral company by 2050, Turkcell (NYSE: TKC) (BIST: TCELL) has signed a share transfer agreement to acquire Boyut Grup Enerji, which owns the İzmir Karadağ Wind Power Plant. This investment of Turkcell strengthened the feature of İzmir as “The City of Technology, Powered by Clean Energy”, where has the 20% of the total installed wind capacity of Turkey.
Turkcell CEO Murat Erkan stated the following in relation to the Karadağ Wind Power Plant acquisition:
“In line with our sustainability approach, we continue to lead investments in renewable energy and target to become a company meeting its electricity need from eco-friendly resources. In accordance with this target, the energy we generated with the self-consumption model in 2020 reached a level equivalent to the annual consumption of 1,230 residences.”
Murat Erkan pointed out the high production efficiency of the Karadağ Wind Power Plant, and that this acquisition would contribute to Turkcell’s focus on sustainability and minimize its environmental footprint.
Erkan stated that the power plant commenced operations in 2016 holding a license that will expire in 2057, and concluded that:
“Turkcell Enerji, operating under the Enerjicell brand, serves individual and corporate customers in Turkey, who are eligible to choose their own electricity suppliers. In addition to our investments in renewable energy and power plants, we also continue to utilize eco-friendly methods through trading with green energy companies. Going forward, we will continue to invest in renewable energy through Turkcell Enerji Çözümleri and make Turkcell a carbon-neutral company that uses electricity generated from eco-friendly resources.”
For the acquisition of Boyut Grup Enerji, an enterprise value (EV) of US$ 29.6 million has been determined. After adjusting for the net debt of Boyut Grup Enerji, Turkcell shall make a payment of US$ 11.5 million. According to the Turkcell statement, Karadağ Wind Power Plant has an 18 MW installed capacity as well as an annual electricity generation capacity of 67.5 GWh and thereby has the potential to meet the annual electricity need of approximately 22,500 houses. The plant has a state purchase guarantee until the end of 2026. The anticipated annual gross revenue of the plant during the 2021-2026 period is approximately US$ 5 million.