Power generators, wholesaler and distributors will experience hard times ahead due to oversupply and exchange rates fluctuations, General Manager of energy company, Akenerji, said Wednesday.
"The wholesale price of electricity has not changed for three years," Ahmet Umit Danisman told Anadolu Agency.
"The sudden changes in foreign currencies rates have negatively affected power companies which have debts in foreign currencies," Danisman said.
On Monday, the lira dropped to a new historic low against the dollar during late-morning trading. The lira dropped to 3.068 liras against the dollar when expectations arose of an interest rate hike due to Federal Reserve Bank pressure on emerging economies. Since then the liras has rebounded to about 3.059.
"Companies should take precautions against exchanges rates as investments in the energy industry are planned for the long term," Danisman cautioned, adding that private companies are in the main the ones investing in the energy sector.
"2016 will be a hard year for everyone but after the parliament elections, the situation will become clearer," Danisman said.
On July 30, daily peak power consumption in Turkey was 867 gigawatt/hours. Electricity generation increased 2.9 percent while consumption showed a 2.5 percent growth compared to the first half of last year, Taner Yildiz, former energy minister of Turkey said.
According to data shared by the Turkey's Energy ministry, 1,413 megawatts (MW) of capacity in the grid system was provided from hydro which has shown the greatest increase among other resources. Additionally, wind supplied 395 MW, thermic energy generated 165 MW, and 85 MW came from unlicensed solar, biogas and cogeneration resources while geothermal energy provided 26 MW to the grid.
Up to the end of June, hydro resources occupied 35 percent or 25,057 MW of the total installed 71,605 MW capacity. The share of natural gas and liquefied natural gas corresponded to 30.1 percent with 21,571 MW in total. Coal made up 20.5 percent of the total installed capacity with 14,659 MW by the end of June.
Multi-fuel resources created 4,673 MW while wind energy made up 4,025 MW of the total amount. Capacity provided from renewables, waste, geothermal and solar reached 854 MW while LPG, fuel oil, asphaltite installed capacity remained at 766 MW by the end of June.
By Huseyin Erdogan & Nuran Erkul