EBRD backs Akfen Holding’s renewables portfolio with US$ 100 million

EBRD backs Akfen Holding’s renewables portfolio with US$ 100 million

EBRD backs Akfen Holding’s renewables portfolio with US$ 100 million

The FINANCIAL -- The EBRD, one of the leading financiers of renewable energy in Turkey and its other regions of operations, is providing a financing package of up to US$ 102 million to the renewable energy arm of the Turkish conglomerate Akfen Holding. The funds will be invested in building four new wind farms and nine solar PV plants with a combined capacity of 327MW.

The new financing demonstrates the EBRD’s commitment to the Turkish economy and confidence in the fundamental momentum behind the global shift to renewable energy.

Akfen Renewables, or Akfen Yenilenebilir Enerji as it is known in Turkey, owns and operates wind, solar and hydro power plants. The EBRD and the IFC, a private sector arm of the World Bank, are minority shareholders in the company with a 15.98 per cent stake each.

The company is investing in four new wind farms with a total capacity of 242 MW: Ucpinar (99 MW), Kocalar (26 MW) and Hasanoba (51 MW) in Çanakkale, a province in north-western Turkey on the Dardanelles Strait, and Denizli (66 MW) in the eponymous province in the south west of the country.

The wind farms will be rated and certified annually with regards to their environmental, social and governance performance by Vigeo-Eiris rating agency. Once operational they are expected to save around 340,000 tonnes of greenhouse gas emissions per year.

For nine new solar photovoltaic plants in five locations across Turkey, the EBRD is lending up to US$ 52 million. The combined capacity of the new solar PV plants will be 85MW.

Supporting this project is part of the EBRD’s larger efforts to help Turkey increase its share of renewables in the energy mix. In line with its renewable energy action plan developed by the country’s Ministry of Energy and Natural Resources with the support of the EBRD, Turkey aims to install 27 GW of non-hydro renewable generation capacity by 2023, 20 GW of which is expected to be wind and 5 GW licenced solar.

The EBRD is a major investor in Turkey. Since 2009 it has invested nearly €11 billion in various sectors of the Turkish economy, with almost all investment in the private sector. Half of the Bank’s portfolio in Turkey constitutes investments that promote sustainable energy and resource use.