As Türkiye obtains energy from the sun, the sector gains support from TSKB

17 May 2019
- 3 min Read

Creating value for Türkiye's inclusive and sustainable development, TSKB places priority on supporting renewable energy projects. In this context, the Bank is involved in the financing of wind, hydroelectricity, biomass and geothermal energy projects as well as solar power projects to promote the development and establishment of renewable energy in Türkiye. The Bank provides qualified financing support to the sustainable investments of its corporate customers through the funds which it obtains from international development finance institutions.

TSKB adopts a project finance approach similar to that applied in other energy projects in the financing of solar energy projects. TSKB aims to repay the loan with the cash to be generated from the project. It determines the maturity of the loan based on the return period of the investment and shapes the repayment terms within this scope. The Bank contributes to Türkiye's sustainable development with the advantages offered by the funds, which it obtains from international and supranational sources.

The Deputy General Manager of TSKB, Hasan Hepkaya, who provided information on the loans that have been extended by TSKB in this field, said: “We analysed more than 200 projects with a total installed capacity of approximately 200 MW in the Central Anatolia, South-eastern Anatolia, Aegean, Mediterranean, Marmara and Eastern Anatolia regions and financed 137 solar power plants with an installed capacity of 134 MW. Since we expect to see the commissioning of licensed Solar Power Plants in 2019 and 2020, we expect these figures to grow with the licensed GES projects which we will finance.”

Mr. Hepkaya pointed out that with the Renewable Energy Resources Support Mechanism (YEKDEM), which serves as an indicator of the importance Türkiye attaches to renewable energy in its energy supply, the sector has developed with increasing momentum in Türkiye. He continued with the following: “Türkiye's total installed solar power capacity stood at 5,238.8 MW as of the end of March 2019 after a total approximately USD 5 billion in investment. Since 2002, TSKB has been supporting renewable energy projects realized in Türkiye by transferring long-term funds. The energy projects which we transfer resources to include hydroelectric power plants, solar, wind farms and geothermal power plants. Approximately 74% of our loan portfolio consists of funds directly related to the financing of sustainability projects. Between 2003 and 2018, TSKB has financed approximately USD 10 billion of total investments in energy projects, with the volume of loans committed to these projects by TSKB being approximately USD 4.4 billion. The Bank has financed 290 renewable energy projects so far. With these projects with an installed capacity of 6,066 MW, we were involved in the financing of 13% of the Türkiye total renewable energy installed capacity. In terms of solar energy, TSKB has financed 136 solar power projects with an installed capacity of 134 MW with the loans we have disbursed so far.”

Mr. Hepkaya said that there were a total of 6,184 licensed and unlicensed solar power plants in Türkiye as of March 2019, with these solar power plants having a total installed capacity of 5,316 MW. He said that the amount of electricity generated from solar power plants in 2018 was approximately 7,836 GWh, with a total of 1,803 GWh of electricity generated from solar power plants in the first three months of 2019. Mr. Hepkaya said that solar power plants accounted for 2.6% of Türkiye's total electricity generation in 2018. He added that those seeking a loan to fund solar energy investments needed a letter of call for unlicensed solar power plant projects, a pre-license certificate for licensed solar power plant projects and feasibility studies, supplier company information, a zoning permit, project approval, title deed information and other necessary legal permits related to the project, with the these documents to be provided at the loan allocation stage for both types of projects. He added that TSKB also placed importance on applicant sponsoring companies being knowledgeable, experienced in the energy sector, and creditable companies in terms of their financial data.