Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
Electricity reforms are a priority for Lebanon, a country in the midst of an economic crisis, at high risk of default with a debt to GDP ratio surpassing 150%, and a negative outlook credit rating. The power sector is accountable for $36bn – 40% – of Lebanon’s public debt. The country is seeking a fast-track solution with ambitious targets, but these are unlikely to be met and may compromise the sector’s sustainability and effectiveness.