| Country : | TURKEY |
| Type of project : | Loan |
Increasing renewable electricity generation in turkey
Project start:2010
Financing:Senior loan of € 11.5 M
Partner:Belen Elektrik Üretim A.Ş
Context
Turkey is one of the countries where growth in energy demand is the highest. Energy deficit threatens today Turkish growth perspectives. It is urgent to reinforce installed capacities. Renewable energy’s potential in the country is important (waterpower, wind, solar, geothermal, biomass, biogas) but little exploited. Therefore, the Turkish government decided to increase renewable energies’ share in electricity generation (with a target of 25% by 2020), by easing foreign investments in this field.
Project objective
The wind farm project deals with increasing electricity generation from renewable sources in Turkey and fostering a better control of energy demand.
Project description
The project consists in building and operating a wind farm of a 30 MW overall capacity (composed of 10 rotors with a 80-meter height) in Belen, in the Mediterranean South-East of Turkey. The project also includes the connection to the grid together with the building of road accesses to the site and liaison roads.
Thus PROPARCO allocated to Belen Elektrik ÜretimA.Ş., subsidiary of Güris Group, a senior loan of € 11.5 M, alongside other banks.
The energy produced will be sold in the market or to distribution companies.
Belen project was certified “Gold standard”, a high quality label concerning carbon credits. Moreover a buying contract of voluntary carbon credits was signed with J.P. Morgan, for the first 5 years of forecasted production.
Impacts
Belen project, first direct intervention of PROPARCO in the area of renewable energies in Turkey, will contribute to:
· Increase energy production capacities in Turkey in a context of pressuring demand and limited supply ;
· Reduce Turkey’s dependency in relation to its importations in fossil fuels;
· Avoid the emission of greenhouse gases estimated to 60 000 teq per year.