A new US$ 350 million financing facility launched by the European Bank for Reconstruction and Development (EBRD) and the Clean Technology Fund (CTF) will boost investment in energy efficiency improvements in Turkish homes and help residents reduce their energy bills.
The Turkey Residential Energy Efficiency Financing Facility (TuREEFF) includes US$ 282.5 million from the EBRD and US$ 67.5 million from CTF. The programme is a combination of long-term financial support to Turkish banks and technical advisory services to banks and home-owners to cut energy consumption and reduce household bills. The advisory services are financed by a US$ 10 million grant from the European Union and CTF.
Sekerbank, a pioneer in energy efficiency and present throughout Turkey, has become the first bank to join the programme. It will receive a US$ 60 million credit line, which includes US$ 12 million from CTF, for on-lending to home-owners, housing associations, condominiums and cooperatives as well as private service providers in the residential sector to improve energy efficiency.
Michael Davey, EBRD Director for Turkey, said: “At the EBRD we believe that investing in more energy efficient homes delivers high value for money. We encourage households across Turkey to make energy efficiency improvements in their homes. Financing and advice are available via Sekerbank and we expect more local banks to join the programme in the near future.”
Zeki Onder, Executive Vice President of Sekerbank said: “As one of our best business partners, the EBRD has been supporting our bank’s unique products over the past years. We are proud to be the first bank to receive a credit line under the EBRD’s new TUREEFF programme. We will continue to successfully finance energy saving investments and the credit line will boost our award-winning EKO Kredi product, particularly for building and residential mass housing projects.”
TuREEFF will finance improvements such as thermal protection, more efficient heating, domestic hot water supply, mechanical ventilation, air-conditioning, lighting and water as well as the development of renewable energy systems in buildings.
The residential sector has been identified as one of the most energy intensive sectors in Turkey, according to a World Bank study. Saving energy in residential buildings will not only have a significant impact on reducing total levels of energy consumption in the country, but will also give a boost to the economy. Turkey currently imports 75 per cent of the energy it consumes and the demand is expected to double by 2017.
TuREEFF builds on the success of the Turkey Sustainable Energy Financing Facility (TurSEFF) under which almost US$ 550 million has been provided to small and medium-sized enterprises (SMEs) for energy efficiency or renewable energy investments. Launched in July 2010, the US$ 284.2 million TurSEFF was extended by a further US$ 265 million in 2013 to meet the growing demand for energy efficiency and small-scale renewable energy investments among SMEs.
Investing in sustainable energy is a priority for the EBRD in Turkey. The Bank started investing in the country in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. To date, the EBRD has invested over €4 billion in the country with half of it dedicated to sustainable energy projects.