Shell to heat up Turkish electricity retail market
Shell is becoming increasingly active in non-oil fields, one of which is the natural gas sector. The global energy player is setting its sights on becoming an actor in the electricity sector and is believed to be planning to deepen its activities in this area by producing electricity from renewable sources.
Shell conducts its natural gas and electricity procurement activities under the ‘Shell Energy’ roof. Shell Energy is expanding and deepening its electricity activities in Europe, which includes Turkey. Shell Energy, which currently sells wholesale electricity in 14 European countries, also started directly supplying electricity to industrial users in the UK, Germany and Italy this year. Turkey represents Shell’s fourth country for this type of market. Shell Energy AS has been conducting electricity trading activities in Turkey since 2014 and is also beginning to directly supply electricity to end users.
Speaking to the daily DUNYA, Shell Energy Europe President David Wells said it is important to first be able to have the supply in order to sell electricity and that there is an advanced wholesale electricity market from where Shell has the possibility to access supply and sell to. “We are planning to invest in solar and wind energy production,” he said. “These investments do not have to be in Turkey and may be in other countries as well.”
Evaluat ng opportun t es
According to Wells, Shell is already producing electricity from natiral gas through capacity renting. The company also has wind terminals in northern America, which Wells said Shell wants to improve but it is not yet certain about where.
Reiterating that Shell is an important player in the gas market, Wells said: “We are aiming to improve our presence in this area. We are just entering [the] electricity [market]. At this stage, we determine customer needs and evaluate where we can add value. We first have to understand the market and evaluate opportunities, and we are now working on doing that.”
‘No l beral zat on n Turk sh gas sector’
Wells recalled that Shell entered the Turkish gas market 10 years ago, being the first private sector importer in the market. “There is no full liberalization in the Turkish gas sector. Importers have limited range of motion and the dominance of the state-owned Petrolium Pipeline Company (BOTAS) continues,” he said. “But liberalization in the electricity market happened much earlier and much more deeply.”