Turkish integrated steelmaker OYAK Mining and Metallurgy Group has reached an agreement to acquire a 51 percent stake in Germany-based Steag Power GmbH in ISKEN-Sugözü Power Plant, gaining full control of the plant, according to the company’s press release. The ISKEN-Sugözü Power Plant generates approximately 9 billion kWh of electricity annually and serves as a major socio-economic actor in the Çukurova region.
“A critical gain for energy security in light of current geopolitical developments”
The 1,360 MW capacity power plant meets approximately 2.6 percent of Turkey's total electricity demand single-handedly. OYAK general manager Süleyman Savaş Erdem emphasized the critical importance of this acquisition during a period of heightened geopolitical risks and energy supply security concerns. "We consider the complete acquisition of this facility, which holds an important share in Turkey's electricity generation, as a critical gain for energy security in light of current geopolitical developments," Erdem stated. The facility has already begun renewable energy projects, including a 21.12 MWp solar power plant (SUGES) that has been commissioned, with plans to expand capacity to 57 MWp.
Pursuit of long-term sustainability
Erdem highlighted that the ISKEN acquisition reflects OYAK's long-term sustainable value creation vision. The company calculated a payback period of 6.5 years for this investment, which is considered relatively short for energy sector investments of this scale. "Energy security is now recognized as a national security issue beyond just energy policy. We manage our energy investments through long-term strategic steps rather than short-term cost-focused approaches," he explained.
OYAK is also pursuing an aggressive renewable energy transformation strategy. The company has solar energy projects across 14 provinces and 25 different regions, totaling 2,200 MWp installed capacity. All projects are targeted to be commissioned and reach full production capacity by the end of 2028.
The renewable investments are primarily designed to meet OYAK companies' own energy needs while optimizing energy costs. Once completed, the annual production capacity will reach approximately 3.5 million MWh, contributing to both energy needs and carbon emission reductions.
