ANKARA - Bloomberg
Doğan Holding and Austria's Verbund are among bidders for power grids the government is selling to boost energy investment and meet surging demand.
Verbund yesterday bid with Turkish partner Hacı Ömer Sabancı Holding for both distribution networks the state asset-sales agency is selling. Doğan is also bidding for both grids, located in the capital Ankara and the industrial city of Sakarya, the company said in a statement. The auction will be later this month.
The sales are aimed at reducing the government's role in the energy business and to encourage more investment to meet demand that's rising 8 percent annually. Demand is forecast to outstrip national power supply as early as next year.
Interest in Turkey's power market is growing after the government raised electricity prices this year for the first time since 2002. It is also introducing an automatic pricing mechanism on July 1 that will set the price of power according to global oil prices, inflation and the YTL's exchange rate.
The Sakarya grid serves four provinces and has 1.3 million customers. Verbund said it supplied eight terawatt hours of power last year. The Ankara grid supplied 10 terawatt hours, Verbund said. The asset-sales agency said it received five bids for each of the grids, or 10 bids total.