Coal, Hydroelectric

Iskenderun dedication a joint Turkish German celebration

24 February 2004 – The German Chancellor Gerhard Schroder and Turkish Prime Minister Recep Tayyip Erdogan jointly presided over the dedication of the 1210 MW Iskenderun coal fired power plant in south-eastern Turkey today. The official opening was hosted by Steag, the German owner and developer of the plant, which is the biggest ever German investment in Turkey.

The Iskendurun power plant cost $1.5bn and was completed on time within 39 months. It represents the biggest single foreign investment in Turkey. Steag owns 75 per cent of the holding company, Isken Enerji, with RWE holding the remaining 25 per cent. Isken has an exclusive Energy Supply Agreement with Turkish utility Tetas for the offtake for the next 16 years.

Prime minister Erdogan was greeted enthusiastically by the many invited locals and spoke of the importance of the project to the region and the successful co-operation with Germany over the project. The Geman chancellor said, “The building of a power plant at Iskenderun was a great idea and is an important project. It has been done using the most modern and environmentally-friendly technology for which Germany is the leading provider.” Both leaders used the occasion to boost Turkey’s application for membership of the EU.

“The Iskenderun power plant will provide a sustainable, efficient and environmentally friendly supply of electricity to the south of Turkey in future,” said Dr. Werner Muller, chairman of the supervisory board of Steag. “The plant has created numerous jobs and favourably stimulated the infrastructure around Adana.”

Speaking to journalists ahead of the opening ceremony, Dr. Heinz Scholholt, CEO of Steag said, “For Steag, this is a milestone in company history. It underscores Steag’s competence in the design, construction and operation of power plants – hard coal fired plants in particular – worldwide.”

A consortium led by Siemens and including Turkish firm Gama-Tekfen was the EPC contractor for the project. Work began in April 2001 and in November 2003, the signing of the temporary acceptance protocol with Tetas took place, marking the start of commercial operations.

The 2 x 605 MW output from the plant represents around eight per cent of Turkey’s power production and, although about one third of electricity is produced from domestic coal, the addition of an imported hard coal facility is a diversification of Turkey’s fuel supply. Hydropower accounts for a further third of electricity output.

The coal fuel for the power plant is currently being imported from Colombia and South Africa and is unloaded in the Bay of Iskenderun by a purpose-built transshipper, constructed in Gdansk, Poland. This transfers the coal onto lighters which are able to dock and unload at the power plant jetty. The plant has a guaranteed annual output of 7.9 TWh, requiring 2 820 000 t of hard coal.

Around 45 per cent of Turkey’s power is now derived from independent power projects and with demand rising by eight per cent annually, some $3.4bn of investment in power generation will be needed each year.