UKEF has signed an agreement with GE Energy Financial Services to finance the solar facility that is poised to be the largest in Turkey
UKEF will provide £217m project financing. (Credit: TheOtherKev from Pixabay.)
UK’s Export Finance (UKEF) is set to provide financial support worth £217m for the construction of the 1.35GW Karapinar solar project in Turkey.
UKEF is the UK’s export credit agency and a government department that works as an integral part of its strategy and operations.
The financing will be offered in form of a project finance and raised through JP Morgan as acting lead arranger and lender supported by the UKEF guarantee.
The project financing announced for the Turkish solar facility is said to be the largest commitment UKEF has ever offered for a solar project.
It is expected to help create more than 100 jobs in the UK, driven by the integration of the solar technology and the assembly of the solar power station in the country.
International Trade Secretary Anne-Marie Trevelyan said: “UK Export Finance is putting the UK at the heart of the global green energy transition.
“With over £200 million pounds worth of backing, we are helping to bring solar energy to 2 million Turkish households. Firm action from the UK alone is not enough to fight the climate crisis.
“UKEF’s financing encourages other countries to invest in renewable energy and opens new markets for UK businesses that will power a recovery underpinned by green jobs.”
GE Energy Financial Services, a division of GE Capital has reached an agreement with the UKEF to guarantee the £217m as buyer credit facility.
The buyer credit facility will enable GE to deploy its FLEXINVERTER solar technology outside the US, and support Turkey’s clean energy goals.
Developed by Turkish solar company Kalyon Enerji, the solar project is part of the first Turkish solar YEKA tender launched by the Turkish Ministry of Energy.
The project is anticipated to be completed in late 2022, and is expected to deliver clean electricity to around two million households Turkey.
It is will help Turkey to continue its expansion of renewable energy resources and commission 10 GW of solar capacity between 2017-27, according to IEA.
GE Renewable Energy CEO renewable hybrids Prakash Chandra said: “There is tremendous potential for solar energy in Turkey which can be addressed through smart solutions that will help integrate this natural energy source into the grid in a reliable way and at utility scale.
“We are thrilled to be partnering with Kalyon Enerji on these projects and look forward to more opportunities to increase the penetration of renewable energy in Turkey.”