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World Bank’s $1 billion renewable energy support to Turkey

The World Bank and Turkey have reached an agreement for a $1 billion program to increase the use of renewable energy. The program aims to increase Turkey’s solar capacity and develop battery storage systems.

Increasing Solar Energy Capacity

Turkey aims to increase its installed solar power capacity from 9.5 gigawatts by 2022 to 52.9 gigawatts by 2035. Similarly, battery storage capacity is planned to reach 7.5 gigawatts. In this context, public and private development banks will work together to develop Turkey’s energy market.

Two Phase Program

The first phase of the program will provide direct financing to commercial and industrial customers for rooftop and ground-mounted solar systems. In the second phase, local commercial banks and leasing companies will be supported to provide similar loans to solar investors. In this way, the program aims to increase the use of distributed solar energy and diversify financing sources.

Views of World Bank Officials

Humberto Lopez, World Bank Country Director for Turkey, praised Turkey’s commitment to its energy transformation and stated that the World Bank is happy to contribute to this process. “Turkey is taking important steps to achieve its goal of doubling its renewable energy capacity by 2035. With these projects, we are supporting to increase energy security, reduce consumer costs and combat climate change,” Lopez said.

Manuel Berlengiero, the World Bank’s Chief Energy Specialist in charge of the program, said that this project will encourage private investment in distributed solar and storage solutions, as well as meeting the growing demand for electricity. “The project will lay the foundations for a mature market that can function with less public support and accelerate the next phase of market development,” Berlengiero said.

Financing Details and Expected Impacts

The World Bank financing will be supported by a €600 million loan from the International Bank for Reconstruction and Development (IBRD), a $30 million loan from the Clean Technology Fund (CTF), and a $3 million grant from the World Bank’s Energy Sector Management Assistance Program (ESMAP). In addition, the program is expected to mobilize $259 million in private capital.

This far-reaching program will help Turkey achieve its renewable energy targets and will provide economic and environmental benefits by enhancing energy security.