EBRD supports Turkey’s transition to renewable energy

Turkey has taken an important step towards reaching its 2023 renewable energy targets thanks to support from the European Bank for Reconstruction and Development (EBRD).
EBRD supports Turkey’s transition to renewable energy

The Turkish Ministry of Energy and Natural Resources has developed the country’s first National Renewable Energy Action Plan, in line with the EU’s Renewable Energy Directive and with the support of the European Bank for Reconstruction and Development (EBRD).

The aim of the plan is to grow the share of renewables in Turkey’s overall energy mix, as well as increasing security of energy supply and reducing greenhouse gas emissions. Turkey has pledged to develop 30 percent of its total installed capacity from renewable sources by 2023 and its current objective is to add 34 GW of hydropower, 20 GW of wind energy, 5 GW of solar energy, 1 GW of geothermal and 1 GW of biomass. It also intends to have 10 percent of its transport requirements met by renewable energy.

In order to reach this goal, Turkey must achieve a sevenfold increase in its non-hydro renewables output in less than ten years. The action plan developed with the EBRD will act as a guiding document for the Ministry of Energy and Natural Resources in order to meet these targets. It sets outs the course of action required in order to attract more investment in renewable energy projects, including identification of the regulatory gaps hindering private investment in the sector and the establishment of measures based on international best practice.

This includes financial support for projects, cutting red tape and improving the legal framework. It also requires the enhancing of the interconnection infrastructure and the development of support mechanisms, such as the early stage geothermal support framework which is currently being pioneered by the EBRD.

“Turkey will continue increasing energy generation from its domestic resources, including from renewable sources such as hydro, wind, geothermal and biomass” said Turkish Minister of Energy and Natural Resources, Taner Yildiz. ““Renewable energy is one of the key elements of the policy and strategy which shape Turkey’s energy agenda.”

Terry McCallion, EBRD Director for Energy Efficiency and Climate Change, added that the action plan is a roadmap to a big change in Turkey. It is ambitious, but with determined and concerted efforts at all levels of government and with the full participation of industry, the country should be able to unlock its green energy potential. This in turn will have a positive impact on businesses, people’s lives and the environment.

The involvement of the EBRD in the initiative builds on a Sustainable Energy Action Plan signed with the Turkish Undersecretariat of the Treasury in 2011, under which the Bank works with the government, provides donor-funded technical advice and invests in renewable energy projects. It is also being supported by a grant of 150,000 euros from the government of Spain, enabling the EBRD to hire the Deloitte consultancy to work with the Ministry.

EBRD previously co-financed the construction of two of the largest wind farms in Turkey: the 142.5 MW Enerjisa Bares wind power plant in Balıkesir and the 135 MW Rotor wind farm in Osmaniye. Both of these plants are now in operation, accounting for about 8 per cent of Turkey’s current wind-power-generated electricity. The bank also finances mid-sized and small-scale renewable energy in the Turkish private sector through dedicated credit lines to Turkish banks, MidSEFF (Turkey Mid-size Sustainable Energy Financing Facility and TurSEFF (Turkey Sustainable Energy Financing Facility. The Bank is also financing sustainable energy in the residential sector through its newly rolled-out Turkey Residential Energy Efficiency Financing Facility. Since it started operating in Turkey in 2009 it has invested almost 5 billion euros in the country through more than 140 projects in infrastructure, energy, agribusiness, industry and finance.

For additional information:

European Bank for Reconstruction and Development (EBRD)

Turkish National Renewable Energy Action Plan

Early Stage Geothermal Support Framework

Add a comment