German Energy Giant RWE Poised to Expand into Turkey

Energy | October 30, 2009, Friday

Only days after withdrawing from the Bulgarian Belene project, RWE AG, one of Europe's biggest energy companies, announces a joint-venture agreement to expand into Turkey. Photo by RWE AG

German energy company RWE AG announced Friday that it had concluded an agreement for the construction of a new electric power station in Turkey.

The news comes only two days after RWE AG abandoned all plans to participate in the construction of a 2000MW nuclear plant in the Bulgarian Danube town of Belene, citing funding problems.

RWE AG, based in Essen, Germany, announced Friday that it will make a final decision about investment some time during the first quarter of 2010. Financial details concerning the deal have not yet been revealed, cites BTA.

The plant will be situated in the Turkish city of Denizli in a joint venture with Turcas.

Construction will be the responsibility of Metka, a Greek company that specializes in building power stations. German group Siemens AG will supply the main components, including gas and steam turbines, RWE announced Friday.

The plant is expected to be completed in 2012. Its generating capacity will be 775 MW; the design is for a gas combined cycle power plant (CCCP).

RWE AG is among Europe’s five largest utilities. The company is active in the generation and transmission as well as the sale and trading of electricity and gas. RWE AG is the largest power producer in Germany and second in the UK.

This agreement with Turkey is part of RWE AG’s strategy of expansion in Central and South-Eastern Europe.