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.
The hydrocarbons sector is increasingly turning to digital solutions to monitor, predict and optimise operations, enabling companies to better insulate themselves against market volatility. The process of digitalisation will create significant vulnerabilities in terms of cybersecurity and data privacy. O&G companies are particularly exposed, and it will take government and industry cooperation to mitigate the risks.