Germany's E.ON enters Turkish market

Dec. 4, 2012 at 6:54 AM   |   Comments

DUSSELDORF, Germany, Dec. 4 (UPI) -- A decision to enter the Turkish electricity market gives German company E.ON a strong position in one of the better regional economies, an executive said.

E.ON announced it signed a contract for an asset swap with Austrian energy company Verbund AH. E.ON, under terms of the deal, acquires a 50 percent stake in Turkish electricity provider Enerjisa.

E.ON Chief Executive Officer Johannes Teyssen said the deal gives E.ON access to a promising energy market outside the core eurozone.

"Turkey has one of the fastest-growing economies in the world and the rise in its energy demand has been strong and steady," he said in a statement.

Enerjisa's installed power-generation capacity, which includes wind, hydro and natural gas power, totals about 1,700 megawatts.

Verbund, in return, takes on E.ON's stake in hydroelectric projects in Bavaria, Germany. The deal leaves E.ON with around 2,300 MW of hydroelectric capacity in Germany.

The deal from the Europeans followed a visit from Russian officials to Turkey. Turkish newspaper Today's Zaman reports that Russian Energy Minister Alexander Novak ensured Ankara that natural gas supplies could be increased during the winter if asked.

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