TSKB Offers USD 200 Million for Solar Power Plants

18 May 2021
- 3 min Read

For the last two decades, TSKB has financed 330 renewable energy projects, including 162 SPP projects. The Bank has so far offered over USD 250 million for projects representing a total installed capacity of 250 MW. Planning to focus on SPP investments in the next couple of years, the Bank aims to extend USD 200 million in funds to SPP projects.

The Industrial Development Bank of Turkey (TSKB) has been supporting renewable energy projects in Turkey since 2002 and continues to lead the sector thanks to the funding opportunities it provides to solar power plants (SPPs).

162 out of 330 renewable energy projects TSKB has funded so far are SPP projects. The total installed capacity financed has exceeded 250 MW, and the total funds offered are in excess of USD 250 million. Planning to focus on SPP investments in the next 2 or 3 years, the Bank aims to extend an additional USD 200 million to these projects.

TSKB also differentiates itself with the leasing services it offers to customers in the financing of rooftop SPPs. The Bank is the center of attention thanks to the long-term loan facilities it offers to multiple projects.

Volkan Karaben, Head of Corporate Banking Sales at TSKB, states that they expect an increase in the number of SPP projects in TSKB's portfolio. He also points out that the share of SPPs financed by TSKB within the total installed capacity of the country could increase significantly. Karaben expresses that they not only finance SPP projects around Turkey but also ensure that these projects are implemented in a sound and efficient manner thanks to the investment advisory services by the expert engineering team. He says the coming period will accommodate an increased demand for SPP investments which can be installed quickly and easily and do not require intensive overtime or labor.

A surge in demand expected in rooftop and ground-mounted SPP investments for internal consumption

Karaben underlines that the demand for SPP investments to be installed on the roofs of residential and industrial facilities and on the land of industrial plants and hybrid power generation in existing energy projects has increased. He also expresses that solar power projects will increasingly benefit Build-Operate-Transfer business models which are based on revenue sharing betweendifferent firms as investors and users. Volkan Karaben highlights Turkey's expertise in sustainable finance. “It is among our priorities to offer accurate and effective models for the funding requirements of SPP projects, which have key roles to our country's transition to a low-carbon economy. Our project finance model makes it possible to repay loans at a closed structure without any external financial support, only through funds self-created by projects or saved from those projects for internal consumption. Since the international funds we secure are long-term funds, we offer long-term repayment plans for SPP projects including grace periods. We plan to continue financing SPP investments, which we expect to increase further in 2022, and to offer additional funds in excess of USD 200 million in the next 2 or 3 years.”

Karaben states that the industrial-type rooftop SPPs are predominantly built on the roofs of existing factories, and the ground-mounted SPPs are established on factory land. Yet he adds that it is not usually possible to take these factories and the land they are developed on as collateral. "Rooftop or ground-mounted SPP investments are often financed either through leasing or by taking the SPP equipments as collateral. At TSKB, we are able to offer leasing solutions internally to our customers in relation to rooftop SPP projects. In addition to financing facilities, we offer investors advisory services for technical feasibility, technology analysis and life cycle cost analysis. These tools will continue to enable us as a competent business partner in rooftop and ground-mounted SPP investments."