"We Aim to Invest 13 Billion Turkish Liras”
Our group company Adm Elektrik, which is an electricity distribution subsidiary of Aydem Energy covering a 33,000 square kilometer area in Aydın, Denizli, and Muğla, serves 4.5% of electricity users in Turkey. The company, which continues to work on sustainability and R&D, managed to rank first in its field among companies in Turkey in the Moody's ESG rankings.
Adm Elektrik, which serves as an electricity distribution company in Aydın, Denizli, and Muğla under Aydem Energy, invested 2.8 billion Turkish liras in technology, infrastructure renovation, and maintenance works in the 33,000 square kilometer area in 2022. The company's investment target for 2023 is 3 billion Turkish liras, 300 million of which is allocated for R&D projects. The company also values employee satisfaction and runs exemplary projects in this regard. In this context, their certification as a "Great Place to Work" by the Great Place to Work® Institute, which provides global service in workplace culture and employee satisfaction, proves the accuracy of these efforts. We spoke with Adm Elektrik General Manager Ahmet Bayramoğlu about the company's investments and sustainability efforts."
In which field does Adm Elektrik work? Can you tell us about the establishment and aims of the company?
As Turkey's first private electricity distribution company, we have been distributing 'energy for life' in the provinces of Aydın, Denizli and Muğla by focusing on people since 2008. We realize electricity infrastructure investments within the framework of economic, social and ecology-based realities and requirements. While we are on our way to become the leading and innovative energy distribution company of our country, with our journey that started with the brave step we took 15 years ago, we work without compromising our approach that considers the sustainability of our natural resources, environment and future generations.
We provide services over our 73 thousand km long electricity distribution line with our modern technological systems and human resources of 2,563 people in an area of 33 thousand square kilometers, consisting of 49 districts and nearly 2,000 neighborhoods/villages in the provinces of Aydın, Denizli and Muğla. We safely deliver more than 10 TWh of electrical energy to 2.1 million consumers, 3.2 million population, which constitutes 4.5 percent of the total number of consumers in Turkey. We provide quality-oriented service. We plan and invest in projects that facilitate human life and protect nature and our natural resources.
In the five-year investment period from 2021 to the end of 2025, we aim to realize infrastructure and technology investments with a total nominal amount of 13.74 billion TL and to carry out infrastructure maintenance works with our innovative approach.
Could you give some information about the position of your company in the energy sector?
We are the affiliate of Aydem Energy, which is one of the leading and leading players of the energy sector in Turkey, operating in the field of electricity distribution. We provide electricity distribution services in the provinces of Aydın, Denizli and Muğla, where the most important tourism destinations of our country, strong agricultural production basins and important industrial facilities are located.
We address approximately 4.5 percent of our country in terms of the number of customers served, and we distribute approximately 5 percent of Turkey's electricity use in our region.
Our lines with a length of 73 thousand kilometers represent 5.4 percent of the total distribution system of our country. We have always been among the first in the satisfaction surveys regarding the services of distribution companies.
What kind of studies do you carry out on growth?
As an electricity distribution company that broke new ground in Turkey, we are constantly improving ourselves in line with the energy market and global trends in order to meet the needs of our consumers. Due to the nature of our work, we provide safe and quality energy for our country and all our stakeholders.
We work with an approach that considers sustainability for our natural resources, environment and future generations. We offer sustainable solutions with our highly equipped and high-performing team that takes agile actions, and we assume an important responsibility for the energy supply security of our region.
Our group's pioneering work and experience in the electricity sector provides a driving force in our journey in the field of electricity distribution. We broke new ground in the electricity distribution sector, such as the establishment of a call center, the implementation of SCADA/DMS and OSOS technological systems. We have implemented important and award-winning projects born in our R&D center.
Could you give some information about your sustainability efforts?
As Adm Elektrik, we have committed to comply with the 10 principles of the United Nations Global Compact, which covers human rights, labor standards, anti-corruption and environment in all our business processes. And thus, we became a participant of the United Nations Global Compact, the world's most comprehensive sustainability platform. As a result of the ESG evaluation made by Moody's, we ranked first among Turkish companies in our sector and third in the world's emerging markets rankings.
We received a 'B degree' in the Climate Change Program of the International Environmental Reporting Platform Carbon Disclosure Project (CDP), one of the largest non-profit environmental reporting initiatives in the world, to encourage companies to lead in environmental risk management.
Energy demand in our region is growing regularly every year and consumption is constantly increasing. Due to the high renewable energy resource potential of our geography, new generation resources are included in our distribution system. We attach great importance to the continuity of our investments in order to meet all these requirements. With the new distribution assets and technological applications we have added to our system, we strengthen our infrastructure and expand our financial assets.
How did you close the year 2022? At what level do you foresee closing the year 2023?
Despite all the difficulties of the global energy crisis, we completed 2022 successfully. This trend continued in 2022 in our region, where the annual electricity consumption increase rate is higher than the increase in the country's electricity consumption. In this context, we saw a growth of over 4% in the electricity consumption of our region compared to the previous year. For commercial and industrial subscriber groups, this rate was 8 percent, above the regional growth.
We achieved a 5 percent improvement in the number and duration of outages per customer. We have realized the digital transformation that will enable to meet the electrical connection demands as soon as possible. Despite all the difficulties experienced due to breaks in the supply chain, we did not experience any disruption in our investments and operational processes.
We foresee an increase in demand in our region in 2023 in line with the trend of past years, and we aim to invest 3 billion TL in total. In addition, we will continue the maintenance works for which we have allocated a budget of 350 million TL without slowing down.
Which investments did you commission last year? What are your investment plans in the coming period?
We have invested 2.8 billion TL in total. In this context, we have implemented distribution system infrastructure investments aimed at renewing and improving the 2.6 billion lira electricity distribution system, meeting capacity demands and strengthening the city lighting infrastructure.
With 200 million liras, we have implemented the necessary technology and R&D investments in order to establish and develop the necessary platforms for distribution system management. We have also completed our maintenance activities with a budget of 320 million TL.
In 2023, we aim to invest 3 billion TL in total. We plan to allocate 2.7 billion liras of this for the renewal and improvement of the electricity distribution system, meeting the capacity demands and strengthening the city lighting infrastructure. In addition, we aim to allocate 300 million liras, with an increase of 50 percent, to technology and R&D investments, which were 200 million liras last year. In addition, we allocate a budget of 350 million TL for maintenance works in 2023.
What kind of competition is there in the field of electricity distribution? What are the features that set you apart from your competitors?
Within the scope of electricity distribution service, we operate in an area that is not open to competition, as we are a natural monopoly in the sector's terms. However, we maintain our leading position among similar service providers on a local and global scale in terms of service quality and customer satisfaction.
New Home for Storks
We continue to protect nature and natural life with our sustainable environmental approach. As the first step of a great awareness, we have been hosting more than 6 thousand storks with our electricity poles every year for more than 14 years, with our corporate social responsibility project “New Home for Storks”, which sets an example for the entire industry. We know that the resources of the world we live in are limited, and we continue our work with the excitement and energy of fulfilling our duties for a cleaner and more livable world. Some of the awards we won with our New Home for Storks corporate social responsibility project:
• Stevie Gold Award in the "Communication/Public Relations Campaign of the Year-Environment" category at the 19th Stevie International Business Awards – 2022
• 3 Awards in the categories of 'Excellence in Corporate Social Responsibility, Ethics and Environmental Responsibility and Sustainability' at Communitas Awards – 2022
• Award winner of the 'National and Regional Campaigns-Turkey' category at the European Excellence Awards – 2022
• A total of 5 Awards, 2 Gold, 1 Silver and 2 Bronze, at the Middle East and North Africa Stevie® Awards -2023
Renewable Energy Trend Increasing
With the effect of increasing costs, we can say that e-mobility will be talked about more in the world and in the sector. In addition, the pandemic and the subsequent Russia-Ukraine crisis caused European countries to make radical changes in their energy policies. With the countries turning to their own energy resources, the renewable energy transformation, which is currently increasing rapidly, will accelerate both globally and on the scale of our country.
These developments make cyber security concerns on the energy side more important. In addition, the acceleration of the spread of electric vehicles will accelerate investments such as distribution-level production, energy storage and charging stations, and will bring micro-grid management to the sector's agenda.
We Work in New Application Areas
We continue our activities in the field of distribution of electrical energy. We continue to work on the technologies of the future, we continue to work on e-mobility applications including energy storage systems, distributed generation systems, grid integration of renewable energy sources, electric vehicles and charging stations.
We Outperformed 97 percent of Companies Worldwide
With the importance we attach to sustainability, operational excellence and efficiency, our company ranked first in its sector in Turkey and third in international emerging markets. This success is very valuable for both our company and our industry. With our performance, we are taking firm steps towards becoming the world's leading distribution company, which is included in the vision of our companies, leaving behind 97 percent of worldwide companies.
Serving in Tourism Regions
Total number of employees: 2,563
Distribution Region: Aydın, Denizli, Muğla
Service Area: 33 thousand km2
Number of Consumers: 2.1 million
Distribution Network Length: 73 thousand km
Distributed Electricity: 10 TWh
Investment Budget Increased to 3 Billion TL
|
2022 |
2023 |
|
|
Total investment amount: |
2.8 Billion TL |
3 Billion TL |
|
Amount allocated for renewal and improvement: |
2.6 Billion TL |
2.7 Billion TL |
|
Technology and R&D investments: |
200 Million TL |
300 Million TL |
|
Budget for maintenance: |
320 Million TL |
350 Million TL |