Turkey Receives Mid-size Sustainable Energy Financing Facility

The renewable energy projects and investments in Turkey received a bolster with the launch of the new Mid-size Sustainable Energy Financing Facility, or MidSEFF by the European Bank for Reconstruction and Development (EBRD). The new initiative is aimed at increasing the energy savings of the country and to reduce its carbon discharges.

The EBRD under MidSEFF will provide a credit of €400 million to the banks in Turkey for offering loans to the private sector borrowers to invest and launch mid-sized renewable energy and waste-to-energy power generation projects. The new framework will allow EBRD to give out €300 million in the form of loans to the commercial banks in Turkey up to 12 years period either in the form of diversified payment rights (DPR) securitization programs or unsecured senior loans launched by the banks. The EBRD will also assume direct risk involvements in chosen sub-projects of the banks up to a value of €100 million. MidSEFF synchronously works with the European Investment Bank (EIB) and is anticipated to receive comparable funding besides the EBRD finance.

Turkey rated to be the sixth major consumer of electric power in Europe does not have bigger sized oil or gas potential and depends on fossil fuel energy to fulfill its energy requirements. The thermal plants located in the country meets nearly 83% of its power requirement. The country currently produces around 1 GW of clean energy from assorted renewable energy sources such as waste-to-energy, biogas, biomass, geothermal and wind. The country is estimated to have a possibility to generate around 110 GWe, which requires an investment of around €200 billion.