Now Available: Turkey Power Report Q2 2013

Fast Market Research recommends "Turkey Power Report Q2 2013" from Business Monitor International, now available

by Bill Thompson

(WireNews+Co) - Boston, MA - 18 March 2013

BMI View: Despite the fact that several of Turkey's economic challenges - including a significant current account deficit, high cost of credit and high reliance on short-term capital flows to finance the current account deficit - constitute pertinent downside risks, we continue to hold our optimistic view for the power industry's growth potential. Not only do rewards on offer remain highly appealing, particularly when regional prospects are factored in; but recent dynamics highlight that a solution to existing energy-related imbalances is cardinal for the country's wider economy, thus making reforms and new investments in the power sector a top priority for the country.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/552411_turkey_power_report_q2_2013.aspx?afid=201) (http://www.fastmr.com/prod/552411_turkey_power_report_q2_2013.aspx?afid=201)

As highlighted in previous analysis, the Turkish economy is not completely out of the woods yet. The Turkish authorities successfully steered the domestic economy away from a hard landing in 2012, with evidence of a rebalancing away from an overreliance on domestic demand towards a greater focus on exports and a more welcoming monetary policy. Yet, developments in late 2012 highlighted still significant volatility.

This notwithstanding, we maintain our relatively bullish Turkish power market view; which has been recently reinforced by regional- and country-specific sector dynamics. When compared to other power markets in Central and Eastern Europe (CEE), Turkey emerges as the clear outperformer as macroeconomic and demographic fundamentals support a positive outlook for power consumption, and thus generation.

With our forecasts showing an average y-o-y growth of 6.44% between 2012 and 2022, substantial investment in new generating capacity will be indispensable, suggesting that rewards on offer in the Turkish market will outweigh the risks. Thus, attracting significant attention not only from traditional European players, but also from an array of newly emerging companies looking to use Turkey as a springboard to penetrate nearby markets and/or display their ability to develop big ticket projects.

In addition, recent reforms and regulatory changes confirm our view that new investments in the power sector are seen as a top priority for the country:

- Aside from providing welcome finances, progress in the privatisation and liberalisation process should not only be read as positive steps for the power market, but also as an attempt by the government to boost its credibility domestically, and internationally. Tenders for 11.5GW were originally expected to be opened in 2010 but have been repeatedly delayed. However, they now look likely to go ahead in the first half of 2013, as suggested by the recent successful sales of three of Turkey's 21 regional power distribution companies.
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