Energy Group companies created value while maintaining sector leadership in every segment of our portfolio. Effective investment solutions and financial models in dynamic market conditions made this possible alongside with good governance, efficiency and operational excellence.
Energy Group companies have solidified their industry leadership by recording strong operational and financial achievements in their respective fields of activity.
PIONEERING STEPS IN ADVANCED TECHNOLOGY AND R&D
Enerjisa Enerji’s successful performance as a sector leader is due to its pioneering steps in sustainability, advanced technology and R&D. Besides, the company remains committed to operational excellence, capital investment and strong financial results.
CORPORATE SUSTAINABILITY EFFORTS
In 2019, Enerjisa Enerji published its first sustainability report in accordance with international standards. The company was presented with the Gold Award at the LACP 2019 Inspire Awards. Enerjisa Enerji also ranked 39th on the Top 100 Global Reports list.
Within Sabancı Group, Enerjisa Enerji is the sector leader in electric distribution and sales while
Enerjisa Üretim leads the sector in electric production and energy trade.
Enerjisa Enerji maintains its sector leadership in both distribution and sales by providing electricity to one out of every four people in Turkey.
A critical year for the Turkish energy sector
2019 was an extraordinary year for the Turkish energy sector. With a high potential within the framework of energy trends such as distributed production, digitalization, low carbon and electrification as well as global trends such as economic growth, industrialization, prolonged average life, rapid urbanization and climate, the Turkish energy sector left behind a year in which the grid continued to grow by 3% with new customers, despite pauses in economic growth and energy demand. With the effect of high hydrology, while the share of hydroelectric power plants increased in order to meet the electricity demand, market prices started to fall with the decrease in the weight and margins of natural gas power plants. Infrastructural investments continued and liberalization extended with the changing tariffs and the last resource tariff limit falling to 7 GWh.
Sabancı Energy Group companies, leader of the Turkish energy sector
Enerjisa Enerji is the leading company in Turkey along its two business lines of electricity distribution and sales. While providing 21 million people access to electricity in 14 provinces under Başkent, Ayedaş and Toroslar; it provides services to approximately 10 million customers in the electric retail sector as well.
While Enerjisa Enerji is maintaining its sector leadership in both distribution and sales by providing electricity to one out of every four people in Turkey; Enerjisa Üretim, the leader production and trade company of Turkey, is the largest private-sector energy producer and the strongest market player in Turkey with its diversified 3,607 MW electricity generation portfolio.
Sabancı Energy Group Companies manage these two business lines, which have very different dynamics but create value in integration, by focusing on operational excellence and effective risk management to create value for all stakeholders.
Successful performance and strong growth by Energy Group companies
Enerjisa Group companies performed quite successfully in the challenging year 2019.
Enerjisa Enerji, 20% of which went public with the equal share sale of Sabancı Holding and E.ON has continued its public offering success with its high share performance and dividend payment. Continuing its activities in line with operational excellence and customer satisfaction in 2019, Enerjisa Enerji completed its strategy work covering the main lines of business, similar and new areas, and put it into practice. It has continued its dynamic portfolio management in line with the market conditions of 2019 and increased its Regulated Asset Base to TL 8.4 billion by maintaining its strong growth in operational efficiency and investment areas. It has created positive value in quality parameters and successfully managed its sales portfolio with a dynamic management against variable prices and tariffs.
As the largest electric production company of the private sector, Enerjisa Üretim’s balanced and diversified production portfolio in terms of energy sources is one of the most important competitive advantages. The operational profitability of the company possessing 56% domestic and renewable energy resources in its portfolio maintained underprice assurance through the YEKDEM mechanism and
dollar-based bilateral agreements. Enerjisa Üretim has been the highest performing company within Sabancı Group with his success in energy trade as well as its high availability. Combining operational excellence and trade capabilities in 2019 with high hydrology and price volatility, Enerjisa Üretim has achieved its highest ever cash flow and profitability. Enerjisa Üretim has produced 4.2 TWh electricity with 95% availability in hydroelectric, 672 GWh with 98% availability in wind, 2.7 TWh with 85% availability in Tufanbeyli while total demand reached 300 TWh. Integrating its success in operational excellence with trade pricing and ancillary services, it has generated an income which exceeded all expectations. Additionally, with successful risk and finance management, strong cash generation has been achieved and the net debt level has been decreased significantly.
Leader practices in human resources, technology and digitalization in energy
Energy Group companies have continued their improvement in human capital and technology as well. As the programs developed for talent improvement continue, numerous steps have been taken for the performance culture and digital management of human resources. Likewise, a number of practices have been implemented in technology and digitalization areas in the sector. In addition to the digitalization projects regarding operational excellence and process developments, projects on data analytics, cloud technologies, operational technologies were carried out with internal and external sponsorships. With 10 projects carried out in the field of advanced data analytics, over TL 25 million positive financial impact has been achieved. Considering technology as an opportunity for the development of the business, Energy Group companies also carried out many projects within the Sabancı Group to create synergy.
Enerjisa Enerji, the sector leader in the technologic transformation
The 5th year of “NAR,” the Internal Entrepreneurship and Innovation Program which aims to implement new ideas has been completed, many pioneer projects in the sector have been successfully implemented. Machine Learning-Based Consumption Data Separation Project awarded by TÜSİAD Industry Transformation, PEAKAPP Project supported by Horizon 2020 and awarded with the TÜBİTAK Success Award, SECUREGRID project approved by the ITEA cluster of the European Union and many projects such as information security and energy efficiency projects carried out with EMRA as well as image processing, fault detection and analysis, fault time estimation and partner hub project for network management enhanced Enerjisa Enerji’s leadership in terms of technologic and digital transformation in the Turkish electric sector.
Data-based decision making with Data Analytics methods
Over 10 analytical projects have been actualized such as the “Self Service Analytical Platform” project aiming to contribute to data democratization which has been awarded the winner prize in the Analytical and Big Data category at IDC 2019 - Energy Summit, a project for early detection of defective gauges and proactive replacements/maintenances, theft and illegal usage project aimed at detecting the use of illegal energy and optimizing work orders, duplicate call analysis project that aims to increase call center efficiency and 10% increase has been achieved in daily work orders and 59% increase has been achieved in successful completion rates.
In addition to all these, Enerjisa Enerji has achieved a 40% improvement in critical work accidents since the beginning of 2019 after the introduction of the Video Monitoring System, which was implemented for the first time in the sector.
New generation and technological energy production
With the vision of “new generation energy production” in 2019, Enerjisa Üretim has commenced many projects and initiatives such as end processing in cloud technologies, virtual intelligence in advanced data analytics and digital twin applications. It has increased its technology intensity with numerous digitalization projects in different fields such as Nikola for cash flow management, Box for financial impacts of currency rate fluctuations, Co-Pilot for the monitoring of field equipment, Plant-check for operational controls, Fark@ for mobile OHS management, PPA for the digitalization of plant operations, Stok Sahası for stock management, El-Dispatcho for trade optimization and Advanced Monitoring for planned maintenances.
Successful implementation in corporate sustainability and governance
Energy Group companies solidified corporate sustainability and governance activities in 2019 to create sustainable value for their stakeholders. By publishing its first sustainability report in 2019, Enerjisa Enerji has taken part in BIST Sustainability Index and has been included in the BIST Corporate Governance Index by taking 9.45 out of 10 in Corporate Governance rating. Enerjisa Enerji’s sustainability report ranked 39th in the Top 100 Global Reports list and was deemed worthy of the Golden Award in LACP 2019 Inspire Awards. The company has also signed the United Nations Global Compact, the world’s largest voluntary corporate sustainability initiative, and the United Nations Women’s Empowerment Principles (WEPs).
2020 priorities and sectorial strategy
Mega trends as well as technological investments and solutions in the energy business and Turkey’s leading dynamics such as growth, urbanization, young population constitute important areas of opportunity which facilitate the energy sector to intersect with various industries, smart cities and transportation.
In 2020, the new implementation period is expected to create a framework to encourage investments, efficiency, quality and innovation, and enable many new opportunities. The new implementation period holds great importance in terms of developing a regulatory framework that will spur investments, boost efficiency and raise quality to achieve a reliable and cost-effective network infrastructure in Turkey. To determine implementation period metrics for the country, sector and consumers in the best way possible, Energy Group companies contribute to the process by establishing close contact with regulatory authorities and public institutions.
Energy Group companies will continue their leading roles in 2020 by supporting sector growth and development toward higher efficiency, competition and greater institutionalization. Sabancı Group aims to maintain its high growth in energy business by providing value to all stakeholders while supporting the growth potential and strategic importance of the sector together with its energy partner E.ON.
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