Shell to heat up Turkish electricit­y retail market

Dünya Executive - - BUSINESS - MEHMET KARA

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.”

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