Turkey’s renewable energy production will receive a boost with a European Bank for Reconstruction and Development (EBRD) loan of $37m to finance the expansion of the Kiyikoy wind farm 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, EBRD said in a statement.
In parallel, the Industrial and Commercial Bank of China (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 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. The bank has previously financed, both directly and through local banks, 3 GW of installed capacity, or seven 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.”
The EBRD is a major investor in the country. Since 2009 it has invested almost €12b in various sectors of the Turkish economy. Half of this investment is in projects that promote the sustainable use of energy and resources.
The EBRD’s €6.7b portfolio in Turkey is the largest among the 38 economies where the bank invests.