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Renewable energy and geothermal key investments by EBRD in Turkey 2017

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Alexander Richter Alexander Richter 16 Jan 2018

The European Bank for Reconstruction and Development (EBRD) has financed a record number of projects in Turkey this year, with more than half of them being renewable energy projects. One of the projects invested was the Kizildere III unit 2 geothermal project by Zorlu Enerji.

In a release this week, the European Bank for Reconstruction and Development (EBRD) reports that the bank delivered strong support for Turkey in 2017 with a combination of a powerful investment programme and the backing of crucial sector policies to modernise the country’s economy and build up its resilience.

A strong level of investment is set to continue in 2018 under the leadership of the new EBRD Managing Director for Turkey, Arvid Tuerkner. As of this year, Turkey will not only be a shareholder and destination of EBRD finance but also a donor to EBRD-led projects, with the creation of the EBRD-Turkey donor fund. This means that the Turkish government will co-finance socially important projects which will be executed according to EBRD standards and requirements.

In 2017 the EBRD invested EUR1.6 billion ($1.9 billion) in Turkey in a record number of 51 projects. Since the Bank started operations in Turkey in 2009, it has invested EUR€10 billion across various sectors of the Turkish economy.  Turkey is now the EBRD’s largest country of operations by annual investment volume and by our portfolio of investments of over EUR7 billion. Nearly all investments (97 per cent) support private companies.

in 2017, half of all EBRD projects in Turkey supported a more efficient use of energy and other resources, as well as renewable energy. Examples include a geothermal power plant, resource-efficient hospitals under a public-private partnership model, higher efficiency standards in residential properties including student housing, and providing finance in partnership with local banks to SMEs, municipalities and households for efficiency improvements.

In 2017, EBRD financed a $70 million loan as part of the $270 million financing package for the Kizilidere III unit 2 expansion project for the construction of the 70MW Kizildere III Unit 2 geothermal power plant located in West Anatolia, Turkey. The senior loan of up to $70 million went to The Zorlu Dogal Elektrik Uretimi A.S. (Zorlu Dogal) guaranteed by Zorlu Enerji Elektrik Uretimi A.S. (Zorlu Enerji) and Zorlu Holding A.i. (Zorlu Holding).

Source: Company release