Three major development banks are helping Turkey diversify its energy mix with an investment adding close to 100 megawatts (MW) in capacity to EFELER, the country’s largest geothermal power plant, the Asian Infrastructure Investment Bank announced on Thursday.
According to the announcement, the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD) and the Black Sea Trade and Development Bank (BSTDB) are contributing to a financial package worth $350 million for three new units at the plant.
Under the financing package, Gurmat Elektrik will receive a $100 million loan from the AIIB, a $60 million loan from the EBRD and $20 million loan from the BSTDB.
"EFELER is located in western Turkey, in the region of the Buyuk Menderes Graben basin, the area in Turkey with the greatest potential for geothermal energy," the bank said.
Gurmat Elektrik, a renewable energy subsidiary of Guris Holding, is using the finance for the expansion at EFELER that will tap into locally available geothermal resources, it added.
EFELER geothermal plant has three units. Of the three new units, EFE-6 with 22.6 MW capacity and EFE-7 with 25 MW are already operational, while EFE-8 with a capacity of 50 MW is still under construction.
"When fully completed next year, the plant’s eight units will have a total installed capacity of 260 MW," the bank said.
In parallel, Turkey’s largest commercial lender Isbank is providing a $90 million loan, and the Industrial Development Bank of Turkey, TSKB, and ICBC Turkey Bank are making loans of $50 million and $30 million, respectively.
According to the Turkish Geothermal Power Plant Investors Association, Turkey plans to increase its geothermal power generation capacity to 2,000 MW by 2020, an increase of nearly 50% compared to year-end 2018.
Turkey's geothermal installed capacity increased 21% and reached to 1,282 MW in 2018, according to international renewables policy network, REN21 Global Status Report - Sustainable Energy in 2019.
By Gulsen Cagatay