The European Bank for Reconstruction and Development announced Monday that the company will financially support the construction of the Efeler geothermal power plant to the west of Turkey.
According to the announcement, the bank will provide a US$200 million loan, alongside additional loans of $325 million from Turkiye İs Bankasi AS, $130 million from Turkiye Sinai Kalkinma Bankasi A.S.and $65 million from the Black Sea Trade and Development Bank.
The plant’s five units – three of them already operational – are situated near Germencik in Turkey's west, in the Buyuk Menderes graben - the area which has the country's greatest potential for geothermal energy.
The plant, which is due for completion at the end of 2015, is expected to have a 170 megawatts in capacity, making it one of the ten largest geothermal plants in the world. The power plant will increase the amount installed geothermal capacity in Turkey, according to the statement.
The Efeler geothermal plant is being built by a subsidiary of Guris Holding, a leading Turkish renewable energy company.
When all units of the Efeler geothermal plant are operational by the end of this year, Guris Holding’s total renewable capacity will be brought to over 435 megawatts.
Almost half of the European Bank for Reconstruction and Development (EBRD) total portfolio in Turkey is in sustainable energy. Since 2009, the EBRD has invested €2.2 billion in 58 renewables projects, including two in the country’s largest wind farms.
The EBRD began investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. In just six years the bank has invested over €5.5 billion in Turkey through more than 150 projects in infrastructure, energy, agribusiness, industry and finance.
Turkey aims to add 34 gigawatts (GW) of hydropower, 20 GW of wind energy, 5 GW of solar energy, 1 GW of biomass and 1 GW of geothermal to its energy mix by 2023.
The geothermal potential in the country is estimated at around 4 GW, of which only 427 MW has been developed to date.
By Gulsen Cagatay