TSKB Has Signed a Loan Agreement Amounting to Eur 200 Million with World Bank to Support Renewable Energy Investments
TSKB has signed the “Accelerating the Market Transition for Distributed Energy Program Additional Financing” loan agreement with International Bank for Reconstruction and Development (IBRD/World Bank). The additional financing of EUR 200 million is provided under the guarantee of the Republic of Türkiye’s Ministry of Treasury and Finance and will support the financing of distributed renewable energy (wind and solar) investments and battery energy storage systems throughout Türkiye.
Continuing its efforts to support the transition to a low-carbon economy in line with Türkiye’s 2053 Net Zero Emission target, TSKB (Industrial Development Bank of Türkiye) secured a EUR 200 million loan from the World Bank for the “Accelerating the Market Transition for Distributed Energy Program Additional Financing” project. This financing is a continuation of the funding provided by the World Bank in 2024 under the Program for Results, which is being successfully implemented in Türkiye for the first time.
The additional financing loan has provided within the scope of the Europe and Central Asia Renewable Energy Scale-up (ECARES) program led by the World Bank. The additional EUR 200 million in financing will expand the scope of the “Accelerating the Market Transition for Distributed Energy Program”, which secured approximately EUR 315 million in 2024 and consists of two phases. Following the completion of the first phase, which involves direct lending, the second phase aims to scale up financing through financial institutions. With the additional financing, the total amount secured by TSKB for the Program has reached approximately EUR 515 million. While the Program initially focused on low-voltage distributed solar energy investments, the expanded scope will include wind energy projects, a broader range of distributed solar energy applications and battery energy storage systems. Through this financing, TSKB will contribute to accelerating Türkiye's energy transition, strengthening energy supply security and supporting the country's climate goals.
Commenting on the agreement, Deputy Minister of Treasury and Finance of the Republic of Türkiye Osman Çelik said: “Ensuring energy security and advancing our renewable energy achievements in line with our 2053 net-zero emission target is of the utmost importance.
This year, as we host COP31, I highly value the additional financing for the 'Türkiye Accelerating the Market Transition for Distributed Energy Program,' secured from the World Bank under our Ministry's guarantee. Successfully implemented by TSKB since 2024, this program will significantly foster our private sector's green transition and increase renewable energy capacity. We remain firmly committed to advancing our cooperation with international development partners for a sustainable future.”
Commenting on the agreement, TSKB CEO Ozan Uyar said: "At TSKB, we are pleased to take another significant step in financing green transformation, which we have pursued for many years in line with our country's sustainable development vision. Türkiye's renewable energy roadmap aims to increase the total wind and solar energy capacity to 120 GW by 2035 and significantly expanding its battery storage capacity. We believe that this financing will bring our country one step closer to its 2053 net zero emission target, while also contributing to our Bank's sustainability and climate goals."
Recalling that Türkiye aims to reduce greenhouse gas emissions by 41% by 2030 compared to the current increase scenario in line with its Nationally Determined Contribution (NDC) under the Paris Agreement, Ozan Uyar added, “As we prepare strongly for the COP31 Summit to be hosted by our country, we are taking on a strategic role in securing our sustainable future. Currently, 62.5% of Türkiye's installed capacity consists of renewable energy projects. Through the financing we have provided, TSKB has supported renewable energy projects representing 14% of Türkiye’s total renewable energy capacity. In addition, by financing more than 782 MW of rooftop and ground-mounted solar power projects, we have supported private-sector companies in Türkiye for the electricity needs through their own renewable energy sources. We also extend our sincere gratitude to the Republic of Türkiye’s Ministry of Treasury and Finance for their continued support to our Bank, and to the World Bank for their trust in our country and TSKB.”
World Bank Country Director for Türkiye, Jean-Christophe Carret made the following remarks on this agreement: "This agreement marks an important step in accelerating Türkiye’s clean energy transition. By partnering with TSKB and we are supporting the expansion of distributed solar energy and battery storage while helping unlock private capital for climate-smart investments. TSKB has been a valued partner in advancing innovative sustainable finance solutions, and its role in implementing this program will help scale investments that strengthen energy security, support economic competitiveness, and reduce emissions. We hope this initiative will catalyze further private sector investment and demonstrate that climate action and economic growth can go hand in hand.”