TSKB Has Signed Agreements Amounting to USD 345 Million with World Bank to Support Distributed Solar Projects

TSKB has signed the “Türkiye Accelerating the Market Transition for Distributed Energy Project” with World Bank. Within the scope of the Project, EUR 300 million loan from IBRD, USD 15 million loan from the Clean Technology Fund (CTF) through IBRD and USD 1.5 million grant from the Energy Sector Management Assistance Program (ESMAP) have been provided. TSKB CEO Murat Bilgiç said, “As TSKB, we currently represent the 15 percent of Türkiye’s installed renewable energy capacity with our longstanding efforts within the frame of Türkiye’s development vision and the support we have provided to green transformation of our country. With this project, we are delighted to encourage energy consumers to become the energy producers and to scale up the capacity of Türkiye in the clean energy field through contributing to energy efficiency.

Continuing its work with the inclusive development mission, TSKB has implemented the “Türkiye Accelerating the Market Transition for Distributed Energy Project” which will directly contribute the 2053 net zero target of Türkiye with the World Bank. With the Program-for-Results (PforR) which will be implemented first time in Türkiye under the guarantee of Ministry of Treasury and Finance of the Republic of Türkiye, it is aimed to support distributed solar photovoltaic investments for electricity production to meet the internal consumption needs of private sector and battery electricity storage systems.

The “Türkiye Accelerating Market Transition for Distributed Energy Project” which has been developed for the amount of 1 billion USD within the scope of The Europe and Central Asia Renewable Energy Scale-up (ECARES) program, contains EUR 300 million loan from IBRD, USD 15 million loan from the Clean Technology Fund (CTF) through IBRD and USD 1.5 million grant from the Energy Sector Management Assistance Program (ESMAP).

TSKB CEO Murat Bilgiç: “TSKB will make a significant contribution to increase Türkiye’s renewable energy capacity and ensuring its efficient utilization.”

Commenting on the project, TSKB CEO Murat Bilgiç remarked, “As TSKB, we will make a significant contribution to increase Türkiye’s renewable energy capacity and ensuring its efficient utilization with the agreements for the amount of USD 345 million provided from the World Bank under the guarantee of our Ministry of Treasury and Finance. With this meaningful project, playing a role in our country's achievement of the transformation goals set forth in the Nationally Determined Contributions, especially in the energy sector, has great importance for ensuring our sustainable future. We express our gratitude to the Ministry of Treasury and Finance for their ongoing support, as well as to the World Bank for their confidence in both our country and TSKB.”

Murat Bilgiç emphasized that Türkiye has tripled of its renewable energy capacity over the past decade is a significant milestone and achievement, and continued, “Renewable energy is one of the important strategic development area in our country’s green transformation. Currently, 55 percent of Türkiye’s installed capacity consists of renewable energy projects. As TSKB, we represent 15 percent of Türkiye’s installed renewable energy capacity with the financial support we have provided to date. Moreover, in the past two years, we have financed over 280 MW of rooftop and land SPP investments, enabling our industrial partners to fulfill their electricity requirements through their own renewable energy sources. Within the framework of the ‘Türkiye Accelerating the Market Transition for Distributed Energy Project,’ which we have signed with the World Bank, we aim to establish a new business model to accelerate the green transformation of our country. In order to increase our renewable energy capacity, our project will focus on expanding the solar energy market for domestic consumption needs with the Program for Results (PforR), which will be implemented for the first time in Türkiye, and will also support battery electricity storage projects. Within the scope of the Program for Results, we aim to achieve concrete and sustainable program results in terms of reducing greenhouse gas emissions and mobilizing private capital within the framework of achieving the certain performance indicators. We will continue to enhance our support to increase the competitive power of the private sector to reach our Bank’s SBTi (Science Based Targets Initiative) approved net zero objectives, as part of our efforts to realize our nation’s 2053 net zero goal.”

Kerem Dönmez, Director General of Foreign Economic Relations at the Ministry of Treasury and Finance, made the following remarks about the project: “As outlined in the 12th Development Plan, a key focus area for us is enhancing energy self-reliance through the utilization of domestic and renewable energy sources, aligning with our target of achieving net zero emissions by 2053. In this context, we continue to establish strong collaborations with the World Bank and other development partners to broaden renewable and clean energy capacities and enhance energy efficiency throughout Türkiye. Through the “Türkiye Accelerating the Market Transition for Distributed Energy Project”, led by TKYB and TSKB and funded by the World Bank, we aim to support private sector investments in solar photovoltaic energy and battery energy storage systems. I am confident that the project will play a significant role in reaching the 2053 net zero emission target.”

Sharing his insights into the project, Humberto Lopez, World Bank Country Director for Türkiye, noted, “At the World Bank Group, we are committed to supporting Türkiye develop its enabling framework and the investments needed to attract private capital to scale the country’s renewable energy capacity. This program is proof of our support and will focus on expanding the distributed solar energy market for end-users such as businesses and industry and pilot distributed battery electricity storage. As such, the project will not only contribute to fighting climate change but also enhance Türkiye’s energy security.”