Located on Botan River in Turkey’s Southeast Antolia Region, the Cetin power plant is designed to have an average annual production capacity of 1.4 TWh, enough to meet the electricity needs of 460,000 Turkish homes.
Reuters quoted Statkraft CEO Christian Rynning-Toennesenas as saying: "We had to suspend the project as the end to the ceasefire between the PKK and the Turkish authorities resulted in armed incidents in the region, close to our site."
A charge of $245.50m has also been announced by the firm as a result of its decision.
Rynning-Toennesen added: "We took the full write down on the assets, in case the plant is never built."
The Cetin project comprises two power plants including the 401MW Main Cetin and the 116MW Lower Cetin which are planned to be built about 6km apart.
Meanwhile, Statkraft is also planning to build 1,000MW of onshore wind power projects in Norway and stop investment in offshore wind power projects.
The decision to scrap investment plan in offshore wind projects comes as a result of revised dividend policy from the Norwegian State entailing the firm pay a full dividend.
Statkraft earlier had the option to retain $588m during 2016-2018.
Rynning-Toennesen said: "As a consequence of the reduced investment capacity, Statkraft, will no longer invest in new offshore wind projects."
Image: Statkraft’s Cetin hydropower plant is located on Botan River, Turkey. Photo: courtesy of Statkraft.
