Featuring an installed capacity and portfolio based entirely on renewable energy sources, Borusan EnBW Enerji makes a direct contribution to sustainability in Turkey and in the world as it becomes one of the leading wind power generation companies.
Total Generation of 6.6 billion kWh Energy in 10 Years
Starting from its first investment in Balıkesir with Bandırma WEPP, Borusan EnBW Enerji grew 11-fold in 10 years and reached 505 MW installed capacity while the total portfolio raised to 1,156 MW. With a total generation of 6.6 billion kWh energy in 10 years, around 3 million houses have been enlightened and natural gas imports of USD 410 million have been avoided.
A Very Strong Partnership…
Since 2009, Borusan and EnBW have been in a very strong partnership in the Turkish Energy Market and their established joint venture company, Borusan EnBW Enerji, has been successfully managed through economic fluctuations, whereby proving its resilience. Since then, the partnership has seized an important opportunity in flourishing the Turkish Electricity Market and invested only in the renewable energy portfolio.
With the current financial situation of Borusan EnBW Enerji, the status of the Turkish electricity market and the renewable energy strategy of parent companies, it can be expected that the partnership will endure many more years to come.
Strategic Positioning
Borusan EnBW Enerji aims to lead the wind energy industry and has made it a core priority to contribute directly to the sustainability of Turkey and the world. The Company enjoys the following competitive advantages:
Energy Industry in 2019
Turkey’s energy generation industry is suffering from high exposure to currency fluctuations due to foreign currency-based debts and limited transparency in energy pricing. Another reason for the low spot electricity price is the weak consumption increase over the last 5 years in comparison to strong private sector investment in the same period, resulting in over-capacity in the electricity supply. Renewable power generators, which add up to 27% of the installed power, have, on the other hand, benefitted from off-take guarantees and USD-based incentive payments.
Turkey’s installed capacity reached 91.3 GW by the end of 2019 with 2,826 MW net capacity added in 2019 compared to the previous year. Investments in renewable energy exceeded the investments in thermal power: 542 MW wind, 255 MW geothermal, 919 MW solar, 203 MW hydro, 258 MW natural gas, 727 MW coal, and 187 MW other capacity were commissioned, whereas 265 MW fuel oil capacity was decommissioned. Renewables’ share in the installed capacity including the hydro-dams is 49%. By the end of 2019, the state owns 25% of the installed capacity and independent generators own 75% of the total capacity. The average increase in installed power over the last five years was 5.7% annually, whereas the appetite in new investments has dropped significantly, resulting in growth rates of 4.7% in 2018 and 3.2% in 2019.
Developments in the Energy Business in 2019
In 2019, unanticipated extra hydro generation of 29 TWh increased hydro’s share to 30%, whereas it was 20% in 2018. The boost in hydro generation led to a significant drop in natural gas generation in 2019. Natural gas share in total generation decreased to 19% in 2019, whereas it was 31% in 2018. The wind generation is 7% of the total generation in Turkey.
In May 2019, unlicensed generation regulation was announced. Monthly clearance of generated vs consumed electricity was introduced, thus enabling the supply of excess generation to the grid. Unlicensed power plants that were built after the announcement of the regulation can sell their excess energy at the price of the active energy (TRY) national tariff (according to previous regulation, unlicensed power plants could sell their excess energy at FiT price (USD)).
In December 2019, there were legal concerns over 13 coal power plants’ compliance with the environmental legislation. Out of these 13 coal power plants, 5 of them (3 GW installed capacity) were completely shut down until they fulfill their obligations. Following this, the price cap of 2,000 TL/MWh was decreased to 600 TL/MWh to avoid any extreme price spikes.
In 2019, gas tariffs for natural gas power plants increased by 3% compared to the end of 2018. Electricity tariff for residential customers increased by 20%, for commercial customers by 33% and for industrial customers by 32%.
New Business Opportunities of the Energy Business in 2019
Wind YEKA 2 for 1,000 MW took place in May 2019. Borusan EnBW Enerji participated in the auctions but withdrew from them on the 1st round due to the aggressive offers of the other participants.
2019 Business Results
Total Installed Power of 505 MW and Total Portfolio Size of 1,156 MW
Borusan EnBW Enerji has a total installed power of 505 MW and a total portfolio size of 1,156 MW. Borusan EnBW Enerji continued its investments in Kıyıköy WEPP, Saros WEPP and 10 tender projects in 2019. The investment decision was taken for Kıyıköy WEPP Extension and Saros WEPP projects, which will start operation in 2020.
Borusan EnBW Enerji’s wind installed capacity is 5.9% of Turkey’s wind installed capacity. Borusan EnBW Enerji’s share in wind generation is 5.8% in 2019 with 1.3 TWh. The total installed capacity of Borusan EnBW Enerji accounts for 0.6% of Turkey’s installed capacity and its 2019 licensed generation corresponds to 0.5% of the total generation in Turkey.
Developments of Saros and Kıyıköy Wind Power Plant in 2019
Kıyıköy Capacity Increase Wind Power Plant Project
Location: Kırklareli, Kıyıköy
Installed Power: 72 MW
Number of Turbines to be Installed: (20)
Project Full Commissioning Date: October 2020
Project Status
Saros Wind Power Plant Project
Location: Çanakkale, Center and Çan
Installed Capacity: 138 MW
Number of Turbines to be Installed: 27
Project Full Commissioning Date: December 2020
Project Status
R&D and Digitalization Steps of Borusan EnBW Enerji
In 2019, Borusan EnBW Enerji developed a Digitalization Roadmap by conducting an Enterprise Architecture Study on which areas it should take initiatives in digitalization. The year 2019 was accepted as the starting point and the areas to be focused on were determined as Data & Analytics, Robotic Process Automation, Business Process Management, Enterprise Content Management, and Integration Management. In 2020, the Enterprise Architecture Study will be revised and new projects are planned to be developed in Data and BPM areas. The aim in 2021 is to increase the profitability in Sales and Maintenance by using advanced analytics and machine learning through the infrastructure Borusan EnBW Enerji established.
In 2019 focus was mainly on the development of a chemical applied to the wind turbine blades to reduce icing. Initial site trials are encouraging so far.
Direct and Indirect Contribution to the World’s Sustainability…
The main approach of Borusan EnBW Enerji to sustainability is to create a direct and indirect contribution to the world’s sustainability in its operations. 11 power plants generate green energy and directly contribute to the world’s sustainability with their “0” emission production. Their generation, therefore, substitutes that of fossil fuel-based power plants having considerable green-house emissions.
Borusan EnBW Enerji also aims to decrease its environmental footprint in its daily operations and investments, thereby creating an indirect impact on the world’s sustainability.
Investment Projects
Kıyıköy WEPP
Saros WEPP
Operational Power Plants
Due to the operation processes, minor quantities of waste were created and therefore the energy consumption and water usage are very low. Despite this, the Company tried its best to further minimize it and keep updated with the new technologies.
Examples of measures taken:
Lean Six Sigma Project Realized…
Every year, operational costs are closely monitored to maintain profitability. Thanks to the digital infrastructure (remote surveillance center), most of the man and plant-based activities are now carried remotely. BEE’s own staff continued to perform wind turbine maintenance activities as the subcontractor of Original Equipment Manufacturer (OEM) and, in some plants, performed all works without Original Equipment Manufacturer (OEM) to lower costs. In addition, lean six sigma projects are realized consistently to lower operational expenses and increase the generation of power plants.
Safe and Healthy Working Environment for All Stakeholders...
At Borusan EnBW Enerji, the aim is to create a safe and healthy working environment for all the employees, customers, suppliers, and local people in the activity areas, protecting the environment we live in and improving the energy performance continuously while keeping up with the “Zero Occupational Accident” target.
Training Programs for the Teams…
Throughout the year, different training programs were provided depending on the needs of the teams. Starting with the basics, General Health Safety& Environment (HSE) training programs were held for each employee by HSE Specialists. To get one step further, the needs of operations, maintenance, and investment teams were analyzed and different sets of training were held to each group.
Successful Results
A new wind turbine supplier was selected for the Çanakkale Saros Wind Power Plant. Processes and permit procedures for Saros WEPP and Kırklareli WEPP projects were successfully continued, financing institutions were determined and construction works were initiated. In June and December 2017, 10 new projects of 395 MW power were added to the portfolio under wind capacity allocation tenders organized by Turkish Electricity Transmission Company (TEIAS); processes and permit procedures were successfully continued. In April 2010 in the context of Corporate Start – Up – Start Up Friendly Corporations organized by Endeavor Turkey, Türkiye Odalar ve Borsalar Birliği Genç Girişimciler Kurulu (TOBB GKK), Özyeğin University and Start Up magazine Borusan EnBW Enerji has been awarded as Effective Company/New Start Up Cooperation. In 2019, 10th anniversary of the establishment of Borusan and EnBW partnership has been celebrated Successful HR projects have been executed throughout the year such as technician management review and HR visits as well as Yarınlara Koşanlar, an employee trademark project whereby employees create the working environment they aspire to have with their built-own actions.
Future Strategy of Borusan EnBW Enerji
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