Initiated in 2009 and completed in 2011, Gülsan has been the direct investor and contractor of the Sefakoy Dam and HPP. Sefakoy Dam & HPP is built in the Eastern Anatolian Region, in the city of Kars, Kagizman, in order to utilize the energy potential of Aras River.

Sefakoy Dam & HPP consists of a RCC (Roller Compacted Concrete) dam, a spillway shaft, spillway tunnels, a stilling basin, water intake, a penstock, a power house, a tailwater channel electrical substation and electric power transmission lines. Behind the 55-meter high dam body, water is collected at the reservoir with a storage capacity of 21,250,000 m³. Then, it is transferred to the vertical axis francis-type turbines, situated at the 1,056 meter tailwater elevation powerhouse with a 94 m³/s flow, through the 3.80 meter wide penstock. The spillway structure is constructed with a vertical shaft of 18 meters in diameter and tunnels of 250 meters in length and diameters of 9 meters. The produced energy is transmitted by the 6 km long power transmission lines with capacities of 33 kV to the interconnected power system.

Sefakoy Dam & HPP began commercial power production on 15 October 2011, with an installed capacity of 35 MW and an annual average production of 175 GWh.

In terms of carbon emissions, Sefakoy Dam & HPP reduces approximately 91.000 tons of CO2 per year.

For the positive environmental impact it has generated, this project has been awarded Verified Emission Reduction (VER) credits by international independent verification bodies.