- EBRD invests US$ 100 million in stake of IC Holding’s renewable energy arm
- Transaction is further boost to Turkey’s renewable energy sector
- Bank looks forward to highly anticipated renewable support policy to unlock new financing
In a new boost to Turkey’s renewable energy sector, the EBRD is investing US$ 100 million in a stake of Ictas Surdurulebilir Enerji Yatirimlari, the renewable arm of Turkey’s IC Energy Holding.
The firm owns a portfolio of ten hydropower plants with a total capacity of 400 MW. With EBRD funds, it plans to invest in wind farms and solar projects with a combined capacity of up to 250MW.
The EBRD investment will also partly finance the recent privatisation of Kadincik hydropower plants, in Mersin, in the south of Turkey, in a move to help increase the participation of private suppliers in power generation.
Jurgen Rigterink, EBRD First Vice President, said: “The EBRD prides itself in being a pioneer in green financing. In Turkey we have been a frontrunner in an exemplary way – both as an investor and as a partner of the local authorities in policy reform. We are delighted that in Ictas we have found a like-minded partner who shares our ambitions and goals. As a shareholder we are committed to help the company grow into a leading producer of renewable energy. We also look forward to a new regulatory support scheme for renewables, which we hope will unlock further investment in the sector and help Turkey switch to domestically-sourced, green power generation.”
Serhat Çeçen, Chairman of IC Ictas Energy, added: “IC Ictas Energy has been one of Turkey’s leading energy companies in the electricity generation, distribution and retail businesses since the very beginning of the liberalisation of the Turkish electricity market. We are committed to increasing our existing renewable portfolio of 400 MW with the support of our long-time financial and business partner, while ensuring that Turkey’s rich natural resources are effectively and efficiently used in electricity production, as envisaged in Turkey’s 2023 strategy.”
Supporting this project is part of the EBRD’s larger efforts to help Turkey increase its share of renewables in the energy mix.
In line with its renewable energy action plan, which was developed by the country’s Ministry of Energy and Natural Resources with the support of the EBRD, Turkey aims to install 27 GW of non-hydro renewable generation capacity by 2023. Some 20 GW of this capacity is expected to be wind and 5 GW licenced solar energy.
The Bank is supporting this goal by financing renewable energy projects and helping the Turkish authorities develop business-friendly policies in the sector.
The EBRD is a leading institutional investor in the country and has invested over €11 billion in 283 projects in Turkey since 2009. The overwhelming majority of EBRD investments in Turkey are in the private sector. One half of the Bank’s portfolio in Turkey constitutes investments that promote sustainable energy and resource use.