AIIB Extends $200 mn Facility for Renewables, Energy Efficiency in Turkey

A USD 200 million on-lending facility has been added to AIIB investments in Turkey to advance the country’s renewables and energy efficiency infrastructure.

The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors recently approved two investment projects in Turkey totaling USD 500 million. These projects will help the country advance its urban and energy infrastructure development. Of the total investment strategy, USD 200 million on-lending facility has been added to AIIB’s investments in Turkey to advance the country’s renewables and energy efficiency infrastructure.

AIIB will provide long-term financing through Türkiye Kalkınma ve Yatırım Bankası (the Development and Investment Bank of Turkey or TKYB) to privately-owned companies in Turkey for investments in renewable energy and energy efficiency infrastructure. These investments will cover power generation based on wind, solar, geothermal and biomass, along with energy efficiency projects that will result in energy savings and a reduction in carbon dioxide emissions.

Energy demand in Turkey is expected to increase by 50 percent over the next decade. The country aims to increase renewable energy’s share of total power generation to 50 percent by 2023 and reduce primary energy consumption by 14 percent in the same year

“AIIB’s financing will help address TKYB’s need for long-term capital for infrastructure projects,” said D.J. Pandian, AIIB Vice President Pandian. “The on-lending facility will help increase Turkey’s installed capacity of renewables-based power generation and improve the energy efficiency of existing installations. It aligns with AIIB’s Energy Strategy and commitment to advancing sustainable infrastructure. The project will also allow AIIB to strengthen TKYB’s environmental and social capabilities.”

Recently, the bank had also announced that it has approved a USD 46.7-million loan for the construction and operation of a 100-megawatt (MW) wind power plant in southern Kazakhstan which, when completed, will be the largest in Central Asia. Located approximately nine kilometers southwest of Zhanatas in the southern Zhambyl region, the plant will, on a yearly basis, provide the country approximately 319 gigawatt-hours (GWh) of renewable energy and reduce carbon dioxide emissions by 260,623 tons.