Maspo Energy is among the energy companies of Gurmen, one of the well-known business groups in Turkey. The Group operates in the fields of textiles, construction & real estate development, energy & mining, agriculture and livestock with its professional management team. Maspo was founded in 2010 to develop and operate geothermal power plant projects in Turkey.

With favorable market and supporting policies and regulations for renewables dynamics in Turkey, promising technical capacities of the Project and access to suitable financing structures, the Company is aiming at becoming the leader player in the geothermal electricity generation sector of Turkey.

The Company won the tender of the General Directorate of Mineral Research and Exploration (“MTA”) for the usage rights of the geothermal field in Manisa – Alasehir, Turkey for 30 years in October 2011. Located in the most active geothermal area in Turkey, the awarded geothermal field covering 126.50 km2 area is also the largest reserved field for such a geothermal project in the country. According to the pre-assessment studies conducted by local and international technical advisors, estimated electricity generation capacity of the field for a sustainable output level is around 140 MW.

Maspo has plans to utilize the geothermal capacity of the field by constructing the geothermal power plants in a phase by phase manner to reach electricity production capacity of approximately 140 MW by 2020 .
Maspo has conducted geological, geochemistry and geophysical surveys, hydrothermal alteration studies, circular tests, long term interference tests and tracer tests (the first test of this kind in Turkey) for enhancing the assessments for the geothermal potential and the sustainable electricity generation.
 

Promising Technical Capacity of the Project

The pre-assessment studies conducted by local and international technical advisors suggest that project has many attractive technical features for the geothermal electricity production due to the tectonic and geological structure of the Project’s field in Manisa – Alasehir, Turkey.

  • Located in one of the most attractive geothermal area in the region
  • The largest reserved geothermal area for similar projects in Turkey
  • Including the well with highest temperature (287 oC at 2,720m depth in February 2011) discovered so far in Turkey
  • Electricity production capacity of 140 MW with conventional methods
  • Further capacity potential up to 350 MW with the use of new technological systems (Enhanced Geothermal System)

 

Why Geothermal?

Electricity production in Turkey is mostly based on fossil fuel power plants such as natural gas and coal-fired thermal power plants causing huge energy imports and natural sustainability issues. As a response to both of these problems, utilizing the countrywide renewable energy capacity more is one of the Government’s policy and several regulatory incentives and regulations have been put in place.

  • Recent regulations for renewable electricity production in global standards
  • For geothermal investment applications submitted to the Energy Market Regulatory Authority (“EPDK”) until the end of 2020, the power purchase guarantee provided by the Government based on fixed feed-in tariff
    (“FIT”) of 10.5 US$ cent per kWh for a period of 10 years
  • Possibility to increase the FIT rate by the use of domestic spares up to 13.2 US$ cent per kWh for geothermal investments
  • Prospects for further pricing and tax incentives in the sector

 

Favorable Market Dynamics

Turkish electricity market has shown great progress in line with the economic growth in the last decade, growing Turkish population, improving life standards and urbanization. In case of future projections, Turkish Electricity Transmission Company (“TEIAS”) in its
2012-2021 capacity projections foresees the need for further energy investments to avoid estimated supply gap in 2017 with the assumption of realizing the same trend in electricity generation and consumption.

  • One of the fastest growing electricity market in the world with 6.2% compound annual growth rate (“CAGR”) for the period between 2002-2012
  • Average growth rate for 2012-2021 period is 7.5% for high case and 6.5% for low case projected by the Ministry of Energy .Current dependency on imported electricity to meet the demand will create the condition for energy investments
  • The fact that electricity consumption per capita in Turkey is still well below the European countries giving insights about the future market potential of the Turkish electricity market
  • Strong political focus on liberalization of the market by reducing the Government’s share in electricity generation and distribution by privatizations
  • Availability of various trading opportunity for electricity via bilateral, wholesale, retail sales
  • Availability of cross border trade with neighboring countries