2 Turkish firms apply to buy Iranian electricity

Today's Zaman

Two Turkish energy distribution firms have applied to Turkey's energy watchdog for licenses to acquire electricity from eastern neighbor Iran, Energy Market Regulatory Agency (EPDK) officials have announced.

The companies are applying to import electricity from Iran on an existing distribution network with an annual capacity of 400 megawatts. Only one of the two companies will be awarded the license to buy and sell Iranian electricity in Turkey. Consequently, the Turkish Electricity Production Company (TEİAŞ) is currently preparing to hold a tender to decide the winner. The firm that makes the highest bid will win the tender. EPDK officials told Today's Zaman that the winner of the tender could start purchasing electricity from Iran before the end of this year.

The officials also said the price of electricity planned to be acquired from Iran will be lower than the price at which electricity is sold in Turkey. This is critical, as otherwise the importer company would be unable to compete with rivals at home, the same officials said.

Turkey is Iran's biggest natural gas customer. The country also buys crude oil from Iran; however, it had to cut back on its oil imports from Iran due to the US sanctions on Tehran. The US currently imposes sanctions on the transfer of some currencies and gold to Iran due to Tehran's suspected nuclear program. Ankara's gas purchases from Iran, on the other hand, are defined by an earlier signed long-term contract. Heavily dependent on imported energy, Turkey has made clear it simply cannot stop buying Iranian oil and gas.