LBBW and KfW IPEX-Bank finance wind farm Karaburun in Turkey

Landesbank Baden-Württemberg (LBBW) and KfW IPEX-Bank are providing a loan of USD 164.5 million to finance the construc­tion of the wind farm "Karaburun" near the Turkish city Izmir. The facility, which will have a capacity of 120 megawatts, will be powered by 50 wind turbines to be built by the German producer ENERCON of Aurich. In addition to supplying and erecting the turbines, Enercon will also service them through a subsidiary over the entire loan term of 14 years after commis­sioning. The total investment cost of the project, which will be implemented by the Turkish group Alto Holding A. S., is around USD 227 million (EUR 182 million). The loan initiated by LBBW and granted by LBBW and KfW IPEX-Bank in equal shares is covered for the most part by an export credit guarantee of the Federal Republic. The transaction is the first Hermes-covered project financing of a wind farm in Turkey, a growth market for renewable energies.

The Karaburun wind farm is expected to supply green electricity to about 100,000 households from 2013. Similar to Germany’s Renewable Energy Sources Act (EEG), electricity generated from renewable energies is promoted by an offtake price guaranteed for ten years under Turkey’s "YEKDEM" incentive.

LBBW has been supporting its clients for many years in the energy sector, for example with tailored financing products for investments in the area of renewable energies. In the process it supports its clients in their activities in Germany and abroad – also by integrating export credit coverage. Financing projects in the area of environmental and climate protection and sup­porting German enterprises in their export business are also an integral part of the programmes offered by KfW IPEX-Bank.

Landesbank Baden-Württemberg (LBBW) is both a commercial bank and the central bank of the savings banks in Baden-Württemberg, Saxony and Rhineland-Palatinate. Its core activities are the private customer business and the business with corporate customers, in particular small and medium-sized enterprises, as well as savings banks. For companies, the support in opening up international markets plays an important role in addition to the expertise in innovative and complex financings. A further focus is placed on real-estate financing as well as the customer-oriented capital market business with banks, savings banks and institutional investors. Specialised subsidiaries such as leasing, factoring or asset manage­ment round out the product and service range of LBBW group.

GmbH KfW IPEX-Bank is responsible for international project and export finance within KfW Bankengruppe. Its function of providing financing to support the German and European economy is derived from the legal mandate of KfW Bankengruppe. Its prime focus is on medium- and long-term lending to support the export economy and develop economic and social infrastructure, and for environmental and climate protection projects. It operates as a legally independent group subsidiary and contributes significantly to the promotional mission of KfW Bankengruppe. It has 531 employees (as of 31 December 2011) and is represented in the key economic and financial centres around the globe.

ENERCON has been among the top producers of wind energy converters over 25 years now. Two of the key contributing factors to the company´s success are innovation and quality. Both highly developed vertical integration and a comprehensive quality manage­ment system play a significant role in secreting ENERCON´s high quality standards. Over 19.300 installed wind energy converters worldwide with an installed power of more than 26 GW consolidate ENERCON`s leading position in the German wind power market.

Wind power in Turkey

1998: 9 MW (- %)
1999: 9 MW (- %)
2000: 19 MW (+111.2 %)
2001: 19 MW (- %)
2002: 19 MW (- %)
2003: 21 MW (+10.6 %)
2004: 21 MW (- %)
2005: 20 MW (-4.7 %)
2006: 65 MW (+225 %)
2007: 207 MW (+218.5 %)
2008: 333 MW (+60.9 %)
2009: 801 MW (+140.6 %)
2010: 1,329 MW (+66 %)
2011: 1,799 MW (+35.4 %)