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Turkish Banks will provide $2.5 billion in financing to clean energy this year

The financing to be provided will be 55 percent solar energy, 25 percent wind energy, 15 percent geothermal energy and the rest will be investments in biomass and bio-gas power plants.

Investment Banking and Finance Director of Garanti BBVA , Emre Hatem, said that the financing provided by banks to the renewable energy sector this year will reach 2.5 billion dollars, and

solar energy projects have a 55 percent share. Speaking to Anadolu Agency, Hatem stated that between 2002 and 2020, banks provided 40 billion dollars of financing for renewable energy investments in Turkey. Pointing out that banks contribute an average of 2 billion dollars annually to the energy sector and security of energy supply in this context, Hatem said:

“This year, we expect the amount of financing provided to the renewable energy sector to increase compared to the average of previous years and reach 2.5 billion dollars. While 55 percent of this amount is financed by solar energy projects, approximately 25 percent is wind energy, 15 percent is geothermal energy, and the rest is financing for biomass and bio-gas power plants..


Emphasizing that they expect the financing provided to the renewable energy sector in Turkey to increase within the scope of their targets to combat climate change, Hatem said:

“In the coming period, we expect renewable energy investments to be 3 billion dollars or more annually in line with the Green Deal, United Nations Climate Summit COP26 and 2053 net zero emission targets. We think that rooftop solar power plants, hybrid energy investments and biomass projects to be established for self-consumption will come to the fore in terms of financing.”

This year, the biggest financing provided to the renewable energy sector in Turkey was 812 million dollars financing provided for Kalyon Karapınar Solar Power Plant. The banks that transferred funds to the project are the British Export Credit Agency (UKEF), JP Morgan Chase Bank, Denizbank, Garanti BBVA, Türkiye İş Bankası, Turkey Development and Investment Bank, Turkey Industrial Development Bank (TSKB) and Turkey Vakiflar Bank.

Enerjisa Enerji also signed a seven-year financing agreement with the European Bank for Reconstruction and Development, worth 110 million dollars, for the financing of infrastructure and network investments, digitalization, smart grid systems and integration of renewable energy resources this week.

Environmental activists, on the other hand, support renewable energy and warn that solar and wind power plants should not be built in agricultural areas, archaeological and forest areas, and should not be built near settlements.