The European Bank for Reconstruction and Development (EBRD) has extended $110m loan to Turkish lender Akbank to fund development of renewable energy projects in Turkey.
The financing is a part of EBRD’s effort to help Turkey in meeting electricity demand while reducing dependency on expensive imported fuel and address climate change.
EBRD funds will be extended through an investment in senior US dollar-denominated notes issued under Akbank’s Diversified Payment Rights (DPR) program, an established market instrument used by Turkish banks to raise long-term funding in the capital markets.
Akbank Treasury executive vice-president of Kerim Rota said: "Akbank continues to be a pioneering force in the Turkish banking sector in providing fresh funding to the private sector for renewable energy and resource efficiency projects in our country.
"We firmly believe that our efforts will also help Turkey meet its growing energy demand with a positive spillover for the financing of the country’s current account deficit, as renewable energy generation will diminish dependency on imported fuels while also addressing climate change.
"Going forward, Akbank will continue supporting Turkey’s goal of increasing the share of renewable energy sources in total production as well as diversifying the country’s energy sources."
Supported by the Turkish Ministry of Energy and Natural Resources and a EUR1.9m grant from the European Union, the financing will benefit projects including solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency as well as water saving and waste minimization projects in Turkey.
EBRD, which is working with the Turkish Ministry of Energy and Natural Resources, has helped the country to develop its first National Renewable Energy Action Plan, which aims to generate 30% of its total power from renewable sources by 2023.
The county intends to add 34GW of hydropower, 20GW of wind energy, 5GW of solar energy, 1GW of geothermal and 1GW of biomass.
Image: Turkey aims to generate 30% of its total power from renewable sources by 2023. Photo: courtesy of European Bank for Reconstruction and Development (EBRD).