Associated Press informed that German power company RWE AG said Friday it has signed an agreement to build a new power plant in Denizli, western Turkey, with its local joint venture Turcas. No financial details were released but RWE, based in Essen, said it would probably make its final investment decision in the first quarter 2010.
Metka, a Greek power plant builder, will be responsible for construction, and Germany’s Siemens AG will supply major components, including gas and steam turbines, RWE said in a statement.
The plant, to be finished in 2012, will be a 775-megawatt combined cycle gas turbine plant. "The Turkish market is attractive, and we wish to carry out a few more projects in order to participate in the growth opportunities the country offers," Leonhard Birnbaum, RWE’s chief strategic officer said.
Germany’s titan RWE and Turcas Guney Elektrik Uretim A. S have awarded METKA the contract for the construction of a 775 MW power plant near Denizli, Turkey, an official announcement said by METKA’s Press Release.
The budget for this project is at 450 million Euro plus a 40 million Euro option while the backlog of projects contracted to the METKA Group now stands close to a total of 2.3 billion Euro. This is a major achievement for the Greek company which will for the first time cooperate with RWE, one of the leading energy companies. Details are as follows
Project Owner: RWE & Turcas Guney Elektrik Uretim A. S. - the newly established joint venture formed by the leading European utility company, RWE AG and Turcas Elektrik Uretim A.S., a subsidiary of Turcas Petrol A.E. (Turcas), a major energy player in South East Europe.
Contractor: METKA S.A. Greece
Key Project Characteristics: Turn-key engineering, procurement and construction for state-of-the-art natural gas fired combined cycle power plant with a net power output of 775 MW. The plant will be based on Siemens SGT5-4000F gas turbine technology, using a multi shaft concept: 2 on 1 configuration of two gas turbines, two heat recovery boilers and one steam turbine.
Schedule: The project will be executed in phases, with a first phase for engineering and activities related to permitting the plant, followed by the full project construction phase. Commercial operation of the plant is planned for the end of 2012.
Budget: METKA’s scope represents an amount of approximately Euro 450 million with various options which may be exercised up to the end of the first phase with a total amount of approximately Euro 40 million.
METKA is proud of this new award by a client with such strong credentials, representing a significant further recognition of its capability as a major EPC contractor at the international level.
Your writer feels happy to get such news on new energy investments in our local energy market, provided that they are environmentally friendly, they have completed all obligations for Environmental Impact Assessment Reports, they receive their license from the Local Regulatory Board, design by local engineering companies as much as possible, fabricate in the local fabrication plants as much as possible, install by our local contractors, commissioned and supervised by our local engineering power, operated by our own staff, and regularly checked by our own Labor force in programmed maintenance. Prior to their EPDK license and EIA application, they will be organizing "Public Information Meeting".
Your writer sincerely feels that energy investors deserve all our support to complete those power plant investments. They deserve since they risk their own property in order to get proper "Corporate Financing" at reasonable interest rates, and payment terms.
Hence your writer also tries to avoid them to make any technical mistakes in their power plant design, furthermore to avoid incorrect selection of the necessary equipment, wishes them to operate the plant for many years, to generate electricity which will push our economic prosperity.
There are not much project details; only already known details are disclosed. We learn that the output capacity is 775 MWe. Since Siemens will supply the major equipment, so Siemens SGT5-4000F CGG configuration will be in the scope. They are expected to install air cooled cooling system. That means they will not use much underground water. That is good for nearby ongoing agricultural activities. As a matter of fact, water is scarce at the neighbouring site.
Foreign investor should be comfortable here that we are ready to help them. We should warn that they should not involve any corruption for speeding the public procedures, getting EPDK licenses, getting EIA approvals. Local investor should feel comfortable that we shall be warning them in proper design, sourcing fabrication, site installation, logistics, and public approvals.
We all expect that these energy investments will bring prosperity, employment and peace to the site. Maximized manpower, maximized engineering/ fabrication/ site installation capabilities will be employed.
After brief review of the project, we feel that the investor group should need answers to the following questions prior to "Public Information Meeting" which will be the base for EIA application, and further EPDK licensing,
- We need to learn the origins of the basic equipment, gas turbine, steam turbine, heat recovery steam generator, condenser, cooling tower. Since the foreign investor is from Germany, we understand that the gas turbine will be of Siemens 2 each SGT5-4000F. Similarly steam Turbine will also be purchased from Siemens. What are the budget figures? When are they going to be delivered to site? How are they transported from which sea port?
- Since there will be space limitations, the heat recovery steam generator will be of vertical gas pass, forced circulation type with supplementary firing. Who will be designing (CMI- Belgium?), who will be the fabricator (Cimtas, Gulermak), who will be the local construction company for site installation?
- It is our understanding that they have not applied yet to EIA certification or to the Local regulatory board for licensing. There should not be any deviation of the information they will be declaring in the local information meeting and the information they will be furnishing to the public administrations.
- Since the selected site is 545 meters above sea level, they need to have supplementary firing in their heat recovery steam generators in order to reach 775 MWe electricity generation output. We would be too pleased to learn the details of their burners, burner management systems, emission controls.
- We shall be too pleased to learn where they will be purchasing the cooling towers, air cooling system design and equipment. As we all know similar size thermal power in Baymina Temelli project, they could not install air cooling systems since the towers would be in the airplane landing route to Murted airforce airport. Investors are to check if the plant air cooled cooling towers are free from airplane landing routes of Denizli Cardak International Airport as well as emergency landing site at nearby highway.
- We need to know who will be the site constructor, what is the budget figure? They should be local companies. Local labours will be at the site.
- We need to know the estimated project period, the importance milestones; we expect that 28-30 months could be a reasonable period.
- We need to know who will be making and paying the new 380 kV transmissions and new natural gas incoming pipeline to the site.
- We need to know when the major equipment land transportation will be made; do we have sufficient roads for that transportation, which will be making the road reinforcement to enable the transportation?
- Do they have long term natural gas purchase agreement with respective organizations; do they have long term electricity sale agreements?
- Do they consider any capacity extension in the long term in 10-20 years time? Do they have enough space/ land for that extension??
- It is known that Siemens SGT5-4000F gas turbine is also suitable for IGCC. Do investors consider any IGCC application in future by gasification nearby Aydin, Yatagan indigenous lignite mines to avoid any energy supply risk?
- Generally we observe that after plant construction and generation of income in 3-5 years, the foreign party decides to sell her shares to the local partner and leave the project/ country. That was the case in Enron in Trakya, selling all her shares to her local partner, Steag in Sugozu. How is the long term policy of the foreign party in this case?
- We will be too pleased to learn if the local party will be thinking to create local engineering department to carry out necessary basic engineering in the long term.
Your writer hopes all the best, and the success to the investors in their new venture.
Your comments are always welcome.
2012 National Coal Policy for Turkey
