Türkiye'de Doğa Dostu Enerjiyi Desteklemek - Boosting Green Energy in Turkey

Boostinggreen energy in Turkey - Türkiye'de Doğa Dostu Enerjiyi Desteklemek

By Volker Ahlemeyer

Internal Communications Adviser 1 June 2009 Awind farmin Osmaniye region receives €45 millioninvestmentfrom EBRD Turkey became one of the EBRD's countries of operations in October 2008 and it represents the second largest economy in the Bank's area of operations. In its first project in Turkey, the EBRD is supporting the development of the country's largest wind farm, which will be built by Rotor Elektrik, a member of Zorlu Energy Group.

"We met a number of companies in Turkey last year to learn more about their projects,' explains Nandita Parshad, Director, Power and Energy team. "Zorlu Energy'sproposalto build a wind farm was a good and quite advanced project, for which most environmental and technical work had already been completed,' she added.

Incommonwith many other business actors, the client's financing of the project suddenly became uncertain with theonsetof the financial crisis.

"Two banks were supposed to provide loans, but they could not complete the financing on their own,' says Ms Parshad.

International financial institutions (IFI)stepped inwith the EBRD providing €45 million, the IFC €55 million and the EIB €30 million to help finance the project. The Turkish electricity market is the sixth largest in Europe and offers great opportunities for investors: it is one of the fastest growing markets globally with an annual increase in energyconsumptionof around 8 per cent since the 1980s. However, Turkey still has a very lowoverallconsumptionrate, whichhighlightsthe potential for growth in its power sector.

Two for the price of one - boosting green energy andprivatisation"Turkeyreliesheavily on gas imports from Russia and is currently locked in with high prices,' remarks Andi Aranitasi, Principal Banker in the EBRD's Power and Energy team. "One of the project's aims is toencouragethe use ofrenewableenergy, but also to reduce the country'sdependenceon energy imports,' he adds.

"Supporting a wind farm project is a very reasonable choice, as it is the form of renewable energy that can be developed the quickest," explains Ms Parshad.

In fact, wind power comprisecompriseless than 0.5 per cent of total electricity consumed in Turkey and the wind farm is the largest renewable energyenterpriseundertaken so far on a project finance base. Successful completion is therefore likely to have aconsiderabledemonstration effect for similar energy projects, especially as Turkey has committed to increase the share of renewable energy in its energy portfolio.

Wind power is expected to play asignificantrole in this plan and the country aims togenerate10,000 MW through wind farms by 2020. "The Turkish energy sector is still very much in public hands: 60 per cent is publicly owned and only 40 per cent is held by private companies,' explained Philip Lam, Associate Banker in the EBRD's Power and Energy team.

The project is therefore alsointendedto increase the percentage of private ownership in the energy sector. "The project is an exemplary showcase for IFI cooperation. Although a number of different institutions wereinvolved, we got to the finishing line in record time," concludes Ms Parshad.