Türkiye Bags $1 Billion From World Bank For Renewables

• The World Bank has signed an agreement to lend $1 billion to Türkiye for renewable energy expansion 
• A results-based financing program, it will be implemented by a public and a private bank of Türkiye 
• Distributed solar and energy storage are the focus areas of development under the program 

The World Bank has agreed to lend $1 billion to Türkiye to help the country expand its use of renewable energy, particularly distributed solar and battery energy storage.  

The program will be implemented by Türkiye's state-owned Development and Investment Bank of Türkiye and privately-owned Industrial Development Bank of Türkiye.  

Under the agreement signed with the World Bank, the 2 local banks will disburse funds approved in a results-based financing program. The results will be independently verified. 

Private developers of rooftop and ground-mounted solar projects for commercial and industrial (C&I) customers will be able to receive these funds directly from the 2 banks. 

Additionally, proceeds will also be provided to other local commercial banks or leasing companies to provide similar loans for solar developers.  

Providing details of the financing arrangement, Türkiye's state-run news agency Anadolu Agency shared that the financing comprises around €600 million ($657 million) in loans from the International Bank of Reconstruction and Development, $30 million from the Clean Technology Fund (CTF), and $3 million in grant funding from the World Bank's Energy Sector Management Assistance Program. It is also expected to mobilize $259 million of private capital. 

Türkiye's total installed solar PV capacity in early 2024 stood at 12.2 GW, according to Ember, with hybrid solar accounting for 4.2%. It pegs the country's total technical rooftop solar potential at over 120 GW (see Solar Booming In Turkey Thanks To Hybrid Power Plants).  

Recently, Anadolu Agency reported Türkiye's total installed solar capacity to have reached 13.9 GW at the end of April 2024, representing an increase of 1.3 GW over the previous month. 

Under its National Energy Plan, Türkiye targets to increase the installed capacity of solar power to 52.9 GW, that of wind power to 29.6 GW, and nuclear power to 7.2 GW by 2035. Solar gets the lion's share of the targeted power generation capacity of 189.7 GW. Battery energy storage capacity will need to expand to 7.5 GW with 2 hours charging time to meet the need for flexibility.