The Turkish Government, the World Bank and Turkish development banks have signed an agreement for a US$1 billion program. The program will help establish and expand Turkey’s distributed solar market and pilot a battery storage program in support of the country’s National Energy Plan.
Turkey’s Solar and Storage Capacity Targets
Turkey aims to increase its installed solar power capacity from 9.5 GW in 2022 to 52.9 GW by 2035. Battery storage capacity is planned to reach 7.5 GW in the same period.
Development Banks and Distributed Energy Market Development
The Development and Investment Bank of Turkey (TKYB) and the Industrial Development Bank of Turkey (TSKB) will implement a two-phase program to develop Turkey’s distributed energy market. The first phase will provide direct financing to private sector investors developing rooftop and ground-mounted solar systems. In the second phase, local commercial banks and leasing companies will be supported to provide similar loans for solar projects. This approach will stimulate the development of a variety of financing sources to increase the use of distributed solar energy.
World Bank’s Contribution and Importance of the Program
Humberto Lopez, World Bank Country Director for Turkey, highlighted the importance of the program and said, “Turkey has undertaken one of the most ambitious energy transition programs among emerging market economies. The World Bank supports Turkey’s goal of doubling its renewable energy capacity by 2035 and is pleased to contribute to efforts to ensure energy security, reduce energy costs and combat climate change through these projects.”
For this program, the World Bank will provide a €600 million (approximately US$657 million) International Bank for Reconstruction and Development (IBRD) loan, a US$30 million Clean Technology Fund (CTF) loan, and US$3 million in grant financing from the World Bank’s Energy Sector Management Assistance Program (ESMAP). In addition, the program is expected to mobilize US$259 million in private capital.
