EBRD has approved a loan worth USD 37 million for financing the expansion of the Kiyikoy wind project in the northwest of Turkey.
The European Bank for Reconstruction and Development (EBRD) has approved a loan worth USD 37 million giving a boost to renewable energy production in Turkey by financing the expansion of the Kiyikoy wind project in the northwest of the country.
The Bank’s loan will be used for the development, construction and operation of a 72 MW extension to the 28 MW wind farm located on the west coast of the Black Sea in the Kirklareli province. In parallel, ICBC Turkey is providing a loan for the same amount. The funds will also refinance a leasing facility provided by a local leasing firm for the original wind farm.
The wind farm developer is Alenka Enerji Uretim ve Yatirim, set up by Borusan EnBW Enerji, a joint venture between the German utility Energie Baden-Württemberg (EnBW) and the Turkish conglomerate Borusan Holding. The joint company manages a portfolio of renewable energy projects with a total generation capacity of 505 MW. This includes eight wind farms, two solar power plants and a hydropower plant.
The extension of the Kiyikoy wind farm is a step towards the government’s objective of installing 27 GW of renewable energy capacity other than hydropower by 2023, of which 20 GW is expected to be wind energy. The Kiyikoy extension will also help save approximately 99,700 tonnes of CO2 emissions per year.
Supporting Turkey’s sustainability goals is among the EBRD’s priorities in the country. To date, the Bank has financed, both directly and through local banks, 3 GW of installed capacity, or 7 percent of the total installed renewable energy capacity in Turkey.
Aida Sitdikova, EBRD Director, Energy Eurasia, said: “Renewables in Turkey represent not only a viable but also a financially attractive investment opportunity. We are proud to have been a frontrunner in the sector – both as an investor and as a partner of the authorities in policy reform. To date, we have financed a significant share of Turkey’s total installed renewable energy generation capacity and are delighted that in Borusan EnBW Enerji we have found a like-minded partner who shares our ambitions.”
The EBRD is a major investor in the country. Since 2009 it has invested almost EUR 12 billion in various sectors of the Turkish economy. Half of this investment is in projects that promote the sustainable use of energy and resources.