The European Bank for Reconstruction and Development (EBRD) has agreed to provide a $37m loan for the extension of Kiyikoy wind farm in Turkey.
In addition to the EBRD, ICBC Turkey will also grant a loan of the same amount for a 72MW extension to the 28MW wind farm on the west coast of the Black Sea in the Kirklareli province.
Additionally, the loan granted by the two financial institutions will refinance the leasing facility provided by a local leasing company to the original wind farm.
EBRD Eurasia Energy director Aida Sitdikova said: “Renewables in Turkey represent not only a viable but also a financially attractive investment opportunity.
“We are proud to have been a frontrunner in the sector, both as an investor and as a partner of the authorities in policy reform.
“To date, we have financed a significant share of Turkey’s total installed renewable energy generation capacity and are delighted that in Borusan EnBW Enerji we have found a like-minded partner who shares our ambitions.”
The Kiyikoy wind farm is being developed by Alenka Enerji Uretim ve Yatirim, which was created by Borusan EnBW Enerji, a joint venture (JV) company of the German utility Energie Baden-Württemberg (EnBW) and the Turkish conglomerate Borusan Holding.
Once completed, the expanded wind facility is expected to offset approximately 99,700t of carbon emissions annually.
The wind farm expansion will support the Turkish Government’s goal of installing 27GW of renewable energy capacity in addition to hydropower by 2023. Of the total capacity, 20GW is expected to be wind energy.
In December 2019, EBRD provided a $100m loan to Turkish utility company Enerjisa Enerji to finance its ongoing investment programme and improve electricity distribution network in the country.