EBRD Considers Loan For 85 MW In Turkey

EBRD And Local Turkish Bank To Provide Loans Of Up to $110 Million For Solar Power Plants With 85 MW Cumulative Capacity In Turkey
03:50 AM (Beijing Time) - 26. April 2018

Out of the 85 MW capacity being developed by Akfen Yenilenebilir Enerji in Turkey, some projects have already achieved completion, like Amasya Solar Power Plant (pictured), which was commissioned in September 2017. (Photo Credit: Akfen Yenilenebilir Enerji A.S.)

Key Takeaways

  • EBRD may extend a long term senior debt financing for up to $55 million for several solar power plants with a cumulative capacity of 85 MW in Turkey
  • The bank is about to provide a $55 million loan, and an equal amount will be loaned by local Turkish Bank Turkiye Is Bankasi A.S.
  • These 70 MW licensed solar assets and 15 MW of license-exempt solar assets are being developed by special purpose vehicles owned by Akfen Yenilenebilir Enerji
  • Project locations are spread out in the provinces of Konya, Amasya, Tokat, Van and Malatya

The European Bank for Reconstruction and Development (EBRD) is considering a long term senior debt financing of up to $55 million for 85 MW PV portfolio in Turkey. This would cover part of the project cost that amounts to a total of $181 million. A parallel loan of equal amount will be extended by Turkiye Is Bankasi A.S., a local Turkish bank for foreigners and expats. EBRD reported last week that project reached a “Concept Reviewed” status, which means that will likely get the green light.

The 85 MW capacity comprises 70 MW of licensed solar assets and 15 MW of un-licensed solar systems, which include:

  • Amasya Solar Power Plant consists of 12 solar power plants of 0.87 MW capacity each. It was commissioned in September 2017 near Kutu Village in Merkez district of Amasya province in the central Black Sea region of Turkey.
  • Konya Yaysun and MT Dogal solar power plants have 9.98 MW capacity each.
  • Tokat Solar Power Plant has 4.95 MW capacity and is located near Kuşoturağı Village in Turhal district of Tokat. It is connected to the grid.
  • Konya ME-SE Solar Power Plant is located near Karatepe Village, in the Sarayönü district of Konya. Once complete, it will have an installed power of 9.90 MW.
  • Malatya Iota Solar Power Plant has a capacity of 9.95 MW and stands near Fırıncı Village in Battalgazi district of Malatya province in the Eastern region of Turkey.
  • Omicron Erciş, Omicron Engil 208 and PSI Engil 207 are three solar power plants in Van province, each with an installed capacity of 9.95 MW. These will be located in Edremit, southeast of Lake Van.

All these projects are being set up by Turkish company Akfen Yenilenebilir Enerji A.S. in Turkey. Its six special purpose vehicles (SPV) will borrow the money from EBRD to develop projects in the provinces of Konya, Amasya, Tokat, Van and Malatya.

All SPVs will be incorporated in Turkey to develop, construct and operate the solar power plants. EBRD and the International Finance Corporation (IFC) each have 13.3% share in Akfen Holding A.S. Akfen Holding is the parent company of Akfen Yenilenebilir Enerji that holds these SPVs.

As per the EBRD, the solar capacity will support the country in increasing the share of renewable energy in the total energy mix. Currently, Turkey depends on imported gas for its electricity requirements. It aims to have a 5 GW solar share out of the targeted 27 GW of non-hydro renewable energy generation capacity by 2023. However, after connecting nearly 1.8 GW in 2017, when it became the largest European solar market, this target will be reached much earlier

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani