GE Power Looks to Turkey to Amp Up Growth
General Electric (NYSE:GE) is looking to satisfy the growing power demand of developing Turkey for GE Power’s next phase of growth. The company has made a commendable step in this direction by bagging a coveted deal to supply equipment for a major new gas-fired power plant project in the Erzin District of southern Turkey. This power plant, whose capacity is expected to be around 900 MW will generate electricity equal to a whopping 2.6% of the country’s current electricity requirement. Energy infrastructure is one of the key businesses of GE, providing for nearly 30% of the stock value. Out of this, about 24% comes from energy while remaining 6% is from oil and gas.
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This power plant will be a combined cycle gas power plant. The facility is expected to have an advanced combustion system to control emissions and meet European standards. GE will be providing the plant with two Frame 9FB Gas turbines which will be used in electricity generation and three generators which will be used to power the facility.
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The Frame 9FB turbine is GE’s most advanced heavy duty air cooled 50Hz gas turbine which provides significant improvements in performance, reliability, net plant efficiency, and operational flexibility over its predecessors. The plant, on completion, will be the most efficient in the region while having a facility for quick start-up and “turn down” of electricity generation. The plant will be ready for operation by 2014.
The reason GE is bullish on Turkey is that its economy continues to grow despite much volatility in world economy and the nearby European Union. The country is starting to feature prominently among the next wave of emerging economies called CIVETS ( Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa ).
The country’s demand for electric power grew by 8% in 2011 and is expected to do even better going ahead. Over the next seven years, it is projected that the Turkey’s electricity requirement will grow by an annual average rate of 6%. This provides a huge opportunity for GE which is already firmly entrenched in the country after providing equipment for power plants with combined capacity over 10,000 megawatts since 1990’s.