Energy Group companies created value while maintaining their sector leadership in every segment of our portfolio by showing a successful performance in dynamic market conditions, with the right investment and financing models, and good governance, efficiency and operational excellence.
A critical year for Turkish energy sector
2019 became an extraordinary year for the Turkish energy sector. Despite the stagnation in economic growth and energy demand, the Turkish energy sector, which has high potential in terms of with global trends such as economic growth, industrialization, the expansion of life expectancy, rapid urbanization and climate, as well as energy trends such as distributed generation, digitization, low carbon and electrification, left behind a year when the network continued to grow by 3%. While the weight of hydroelectric power plants has increased in meeting the electricity demand with the effect of high hydrology, the market prices dropped due to the decrease in the weight and margins of natural gas power plants and infrastructure development continued with network investments, and progress was achieved in liberalization with the changing tariffs and the final resource limit dropping to 7 GWh.
Successful performance and strong growth from Energy Group companies
Enerjisa Group companies demonstrated a successful performance in 2019 under rough conditions.
The balanced and efficient production portfolio diversified in terms of energy resources is one of the most important competitive advantages of Enerjisa Üretim, the largest electricity generation company of the private sector. The operational profitability of the company, which keeps 56% domestic and renewable energy resources in its portfolio, is under price guarantee with the YEKDEM mechanism and dollar-based bilateral agreements. Enerjisa Üretim became the best performing company within the Sabancı Group with its high availability and success in energy trade. Enerjisa Üretim, which combines operational excellence and trade capabilities in 2019, which contained high hydrology and price mobility, achieved record cash flow and profitability. In response to the total demand reaching 300 TWh, Enerjisa Üretim produced 4.2 TWh of hydroelectric power with an availability of 95%, 672 GWh of wind power with 98% availability, and 2.7 TWh of electricity with 85% availability in Tufanbeyli. It has combined its success in operational excellence with pricing and ancillary services strategy in trade, generating much higher revenues than expected. In addition, strong cash creation was achieved with successful risk and finance management, and the net debt level was significantly reduced.
Successfully managing its existing portfolio, Enerjisa Üretim won the 500 MW YEKA wind power plant tender in 2019, in line with its sustainable growth targets. Under the US dollar-based and long-term purchase guarantee, the portfolio's growth target in renewable energy was materialized. Necessary steps were taken for the establishment of Enerjisa Europe in order to transform the accumulation in trade into value in foreign markets and to seize the opportunities that may arise in the European market.
Pioneering practices in human resources, technology and digitalization in energy
Energy Group companies continued the development in human and technology dimensions in 2019, which they deem as a source of value. While continuing the programs developed for talent development, many steps have been taken for the digital management of performance culture and human resources. Similarly, many practices were implemented in the field of technology and digitalization in the sector. Along with digitalization projects for operational excellence and process improvements, projects on advanced data analytics, cloud technologies, and operational technologies were carried out with internal and external sponsorships. Energy Group companies, which perceive technology as an opportunity for the development of their business nature, also realized many projects within the Group to produce synergies.
New generation and technological energy generation
Enerjisa Üretim, which achieved great transformation and development in technology and digitalization with the “new generation energy production” vision in 2019, launched many projects and initiatives such as end processing in cloud technologies, virtual intelligence and digital twin applications in advanced data analytics, smart feedbacks in operational technologies and process automation. It enhanced its technology-orientation with numerous digitalization projects in different fields such as Nikola for cash flow management, Box for financial effects of foreign exchange fluctuations, Co-Pilot for monitoring field equipment, Plant-check for operational controls, Fark@ for mobile OHS management, PPA for digitization of power plant operations, Stok Sahası for stock management, El-Dispatcho for trade optimization, and Advanced Monitoring for planned maintenance.
Successful practices in corporate sustainability and management
Enerjisa Üretim, based on domestic and renewable energy, has completed all environmental permits of its portfolio and prevented 3.8 million tons of CO2 emission thanks to renewable power plants. It will continue to play its role as one of the biggest investors in green energy field in Turkey with its growth in the field of renewable energy.
2020 priorities and sectoral strategy
Mega trends in energy and Turkey’s dynamics such as growth, urbanization, young population creates important fields of opportunity at the intersection of technological investments and solutions in the energy sector with fields such as various industrial sectors, smart cities and transportation.
Energy Group companies will continue their pioneering roles in the sector's growth, efficient and competitive development and embrace a more institutional character in 2020. Sabancı Group, together with its energy partner E.ON, aims to continue its high growth in the energy field by continuing to create value for all stakeholders by supporting the strategic importance and development potential of the sector in its activities in 2020.
Web Site: https://www.enerjisauretim.com.tr/