EBRD has acquired stake in Ictas Surdurulebilir Enerji Yatirimlari, the renewable energy arm of Turkeyâ€™s IC Holding for $100m.
The EBRDâ€™s investment is expected to provide new boost to Turkeyâ€™s renewable energy sector. Ictas Surdurulebilir Enerji Yatirimlari owns a portfolio of ten hydropower plants with a total capacity of 400MW. With the funding, the company expects to invest in wind and solar power with a combined capacity of up to 250MW.
The investment will also be used to party finance the recent privatisation of Kadincik hydropower plants, in Mersin. The move is expected to encourage the participation of private suppliers in power generation.
EBRD First Vice President Jurgen Rigterink said: â€śThe EBRD prides itself in being a pioneer in green financing. In Turkey we have been a frontrunner in an exemplary way â€“ 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.
â€śAs 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.â€ť
EBRD stated that supporting the project is part of its efforts to help Turkey in increasing its share of renewables in its energy mix.
Turkey aims to install 27GW of non-hydro renewable generation capacity by 2023, as per renewable energy action plan, which was developed by the countryâ€™s Ministry of Energy and Natural Resources with the support of the EBRD.Â About 20GW of the targeted capacity is expected to be wind and about 5GW will be licenced solar energy.
EBRD is supporting the countryâ€™s goal by providing finances for the renewable projects and helping the Turkish authorities develop business-friendly policies in the sector.
IC Ictas Energy chairman Serhat Ă‡eĂ§en said: â€śIC Ictas Energy has been one of Turkeyâ€™s leading energy companies in the electricity generation, distribution and retail businesses since the very beginning of the liberalisation of the Turkish electricity market.
â€śWe 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 Turkeyâ€™s rich natural resources are effectively and efficiently used in electricity production, as envisaged in Turkeyâ€™s 2023 strategy.â€ť