Turkey receives World Bank and Clean Technology Fund financing for renewable energy and energy efficiency programme

29 May 2009

The World Bank board of executive directors has approved financing of $600m for Turkey’s Private Sector Renewable Energy and Energy Efficiency Project. The main objective of the project is to help increase privately owned and operated energy production from indigenous renewable sources within the market-based framework of the Turkish Electricity Market Law, thereby helping to enhance energy efficiency and curb greenhouse gas emissions as a result.

The Project aims to tap Turkey’s significant renewable energy potential from hydro, wind, solar, biomass, geothermal, and other resources. The Project also includes energy efficiency measures to help reduce waste in energy consumption.

The financing includes $500m from the International Bank for Reconstruction and Development (IBRD) and $100m from the Clean Technology Fund (CTF).

The Project is the first to use resources from the newly established CTF – a new $5.2bn multilateral fund managed by the World Bank and administered through the World Bank Group and other multilateral development banks. The governments of Australia, France, Germany, Japan, Spain, Sweden, United Kingdom, and US have made pledges or contributions to the fund. The CTF was set up to provide low-interest financing to scale up low carbon technologies to reduce greenhouse gas emissions during the period until a new global climate change agreement is negotiated and becomes effective.

‘Turkey’s Renewable Energy and Energy Efficiency Project will help enhance energy security, support a clean energy transition, and increase private sector involvement in the development and financing of clean energy and energy efficiency investments,’ said Ulrich Zachau, Country Director for Turkey. ‘The project establishes a financial mechanism through Turkish banks that will assist Turkish entrepreneurs in leveraging their capital to economically develop renewable resources. We are very pleased to be able to support this innovative project, and we are especially happy that this project will be the first to receive low-interest funding from the Clean Technology Fund (CTF) for renewable energy resource development.’

World Bank and CTF financing for the project will include two loans, one from the IBRD and one from the CTF, each to two Turkish development banks – Türkiye Sinai Kalkınma Bankası (TSKB) the Turkish Industrial Development Bank (private) and Türkiye Kalkınma Bankasi (TKB) the Turkish Development Bank (Government) – for credit line financing of renewable energy and energy efficiency investments, according to a statement.

Other donors such as the Kreditanstalt für Wiederaufbau (KfW) and United Nations Development Program (UNDP) will provide parallel technical assistance financing from their existing and planned programs – focused on capacity building for financial intermediaries and industries for energy efficiency investments. Additional financing and technical assistance is also expected to be provided by Agence Française de Developpement (AFD) and Japan International Cooperation Agency (JICA).

The Private Sector Renewable Energy and Energy Efficiency Project establishes a term lending facility within the TSKB and TKB. The IBRD loan and CTF allocation for TSKB is $350m equivalent and $70m respectively, while for TKB the allocation is $150m equivalent and $30m respectively.

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Tags: biomass, cleantech, energy efficiency, geothermal, hydro, solar, waste, wind

This story was published on Friday, May 29th, 2009 at 1:27 pm and is filed under Middle East, biomass/biofuel, energy efficiency, energy storage, funds, geothermal, policy, solar, water, wind. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Turkey receives World Bank and Clean Technology Fund financing for renewable energy and energy efficiency programme”

1. student loans says:

   2 June 2009 at 5:25 am

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