Three major development banks are helping Turkey diversify its energy mix with an investment, adding close to 100 megawatts in capacity to EFELER, the country’s largest geothermal power plant.
The European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB) and the Black Sea Trade and Development Bank (BSTDB) are contributing to a financial package worth $350 million for three new units at the plant.
EFELER is located in western Turkey, in the region of the Büyük Menderes Graben basin, the area in Turkey with the greatest potential for geothermal energy.
Gürmat Elektrik, a renewable energy subsidiary of Güriş Holding, is using the finance for the expansion at EFELER that will tap into locally available geothermal resources.
Of the three new units, EFE-6, with 22.6- megawatt capacity, and EFE-7, with 25 megawatts, are already operational. EFE-8, with a capacity of 50 megawatts, is still under construction.
When fully completed next year, the plant’s eight units will have a total installed capacity of 260 megawatts.
Under the financing package, Gürmat Elektrik will receive $100 million loan from the AIIB, a $60 million loan from the EBRD and $20 million loan from the BSTDB.
In parallel, Turkey’s largest commercial lender, Isbank, is providing a $90 million loan, and the Industrial Development Bank of Turkey TSKB and ICBC Turkey are making loans of $50 million and $30 million, respectively.
The financing is part of the effort to help Turkey develop local renewable energy sources and encourage private-sector investment in the energy sector. Güriş Holding has also committed to providing more career opportunities for women in this traditionally male-dominated sector.
“This project represents a number of firsts for AIIB: EFELER is our first non-sovereign-based financing in Turkey, our first co-financing with the EBRD and the BSTDB in the private sector, and our first foray in the geothermal space,” said D.J. Pandian, vice president and CIO of AIIB. “This project is a visible example of AIIB’s commitment to the expansion of renewable energy projects led by the private sector in Turkey. We are very glad to partner with Güriş Holding and our co-financiers in this important transaction.”
