On August 26, 2015, the Council of Ministers authorized EUAS (Elektrik Üretim Anonim Şirketi, EÜAŞ), the Turkish state-owned electricity generation company, to establish an overseas entity ("EUAS HoldCo") to invest in electricity generation and trade and waste management abroad.
EUAS HoldCo will be headquartered in Jersey, Channel Islands, with initial capital of USD 50 million, which can be increased under EUAS's investment and financing programs. EUAS HoldCo is authorized to retain its dividends abroad, incorporate special purpose vehicles, and invest in companies abroad, subject to approval by EUAS's board and the Ministry of Energy and Natural Resources.
EUAS HoldCo's directors will include one representative from (i) the Undersecretariat of the Treasury, (ii) the Ministry of Development, and (iii) the Ministry of Energy and Natural Resources.
Despite Turkey's substantial privatization policy of the last decade, which led to the sale of the majority of EUAS's portfolio, EUAS is still the leading electricity generation company in the Turkish market, with a total installed capacity of approximately 13,000 MW providing 28.1% of the electricity in the Turkish market at the end of 2014. According to its own 2014 Sector Report, EUAS ranks eighth among the national electricity generation companies in the EU.
Following the lead of companies like RWE, GDF Suez, E.ON and Verbund, EUAS looks to enter the international electricity market, and expand its portfolio. This strategy includes building power plants abroad and participating in the privatization of power plants and distribution utilities. EUAS HoldCo could play a pivotal role in achieving Turkey's ambitions as a geographically strategic energy hub by investing in neighboring countries.