Message from the President

Message from the President

Valued Partners,

Since the beginning of 2020, the whole world has experienced great difficulties in the fight against the Corona virus pandemic, and Covid-19 has become the main topic on the agenda both abroad and in Turkey. While the spread of the disease caused the loss of many lives, the economy came to a standstill due to numerous lockdowns and other restrictive measures implemented to contain the virus. The financial measures taken by central banks and governments in developed countries to mitigate the negative economic impacts of the pandemic managed to absorb some of the shock, however, risk perception reached peak levels in the first half of the year. A notable recovery was recorded in the third quarter of the year, while the efforts to develop a vaccine against the virus gained speed, a revival was observed in the economy and financial markets with the relaxation of pandemic restrictions. On the other hand, the US presidential elections and Brexit also maintained their place on the world agenda. 
Another important development that took the world economy and markets by surprise was the oil wars between Russia and Saudi Arabia. The dispute between the two parties led to a sharp fall in oil prices. The fall in demand due to the corona virus also had a role in declining prices. Severe losses occurred in other commodity prices due to the anticipated shrink in the world economy. 

Although the Turkish economy made a good start to the first half of the year, the impact of the pandemic was eventually felt as economic activity lost momentum. Confidence in the economy quickly recovered as the spread of the pandemic slowed down and the economic activity resumed during the summer months. In the same period, low-interest loan schemes provided by public banks contributed to the rapid growth in domestic demand as of June. Figures show that the Turkish economy recovered towards the end of 2020.

Now for an assessment of the sector;

At the end of 2020, Turkey’s installed capacity increased to 95,09 MW. This power was respectively produced by Independent Production Companies (67.38%), the public sector (EUAS and EUAS affiliated) (22.38%), Custom Model Production Companies (BO, BOT, Operation License Transfer) (3.10%) and unlicensed production companies (7.14%). 

The distribution of installed power according to resources was hydroelectricity (32.36%), coal fired thermal (49.93%), wind (9.09%), geothermal (1.69%), and solar (6.93%). In other words, the share of renewable production capacity in installed capacity has reached 50.07%.

Economic stagnation over recent years has led to a slower rise in demand. Energy demand at the end of 2020 stood at 290,856 billion kWh. 

Valued Partners, 

In terms of resource distribution, hydroelectric accounted for 51.1% of energy produced at our plants in 2020, followed by wind at 40.6% and geothermal at 8.3%. In 2020, our annual total energy production reached 547,775 MWh, putting Enda’s share in Turkey’s energy industry at 0.2%.

In order to prevent silicate scaling in 3 production wells at the Tuzla Geothermal Power Plant, a test system was established to inject carbon dioxide instead of formic acid. Following successful trial studies, formic acid was removed from the system and only carbon dioxide was given to the system throughout 2020. The success of this change has allowed the company to make annual savings in the region of 1 million TL. To reduce risk on the environment, the pipeline running between the wells and the discharge pool was renewed and laid in a concrete canal. 

The highest ever production value was achieved (238,242 kWh) at Eğlence I and II HPPs. A total of 222,494 kWh has been produced since our Wind Power Plants and our subsidiary Yaylaköy became operational, overall, production values were above feasibility forecasts. In addition to the ISO 9001 Quality Management, ISO 14001 Environmental Management, ISO 45001 Occupational Health and Safety, ISO 50001 Energy Management, ISO 10002 Customer Satisfaction and ISO 27001 Information Safety Management Systems Quality certificates the holding also acquired the V-Safe Covid-19 certificate.

The controlling partner Enda submitted the public offering procedure to vote at the 2019 ordinary general assembly meeting on 27 August 2020. The majority of the partners rejected the proposal, and the public offering was cancelled and the merger with Egenda was initiated.

Egenda shareholders were offered to maintain their partnership in Enda by acquiring one Enda share in return for every Egenda share surrendered through share exchange. Consequently, the power of attorney of 160 of our partners was acquired and an application was made to the court for valuation.

As stipulated by the recently enacted Personal Data Protection Law No. 6698, the General Manager was authorized to establishing a Protection of Confidential Information committee and the compliance process was initiated. 

Undoubtedly, the Covid-19 pandemic was the biggest event of 2020. Our operational system was reorganized in the power plants considering the pandemic. On the other hand, a remote working system was introduced for the central office personnel, and thanks to our timely system investments business continued efficiently although we did not see each other in person. 

On behalf of the management, I would like to thank our employees and our esteemed partners, who made their support felt during this difficult period. I wish you a healthy year.

Sincerely,
Cem Bakioğlu, President