en.Wedoany.com Reported - The World Bank has approved an additional €400 million (approximately $464 million) in financing to support the expansion of Turkey's new energy industry. This funding is part of the World Bank's ongoing efforts to help Turkey increase its clean energy capacity, enhance grid stability, and attract private investment.
In 2024, the World Bank had already launched a similar financing phase, which focused on promoting residential low-voltage solar photovoltaic systems in Turkey. The second phase expands the scope of support to include onshore wind power and large-scale centralized battery energy storage systems.
Turkey has set clear energy transition targets, aiming to reach a total installed capacity of 120 GW for wind and solar by 2035, while significantly expanding supporting storage facilities to address the challenges of integrating new energy into the grid. Currently, local new energy developers generally face financing difficulties, as most domestic financial institutions can only offer short-term loans, which are ill-suited to the long-term development cycles of power stations.
To address the chronic shortage of long-term capital, this new World Bank funding will be channeled through Turkey's two major development banks: the Turkish Development and Investment Bank (TKYB) and the Industrial Development Bank of Turkey (TSKB). These institutions will provide long-term, low-interest loans to eligible wind, solar, and storage projects.
The entire funding mechanism operates on a performance-based disbursement system. Funds are released in tranches only after third-party independent experts verify that projects have met predetermined performance indicators and construction milestones, ensuring transparency, clear accountability, and preventing inefficient spending.
A World Bank official stated that expanding storage and onshore wind capacity are key levers for upgrading Turkey's power grid and strengthening its power supply system. The new financing can remove financial barriers and facilitate the implementation of clean energy projects that are ready for construction.
According to estimates, this support project is expected to add approximately 1,579 MW of new renewable energy generation capacity, along with 392 MWh of energy storage capacity. It is also projected to leverage up to $405 million in private co-financing, fully activating domestic clean energy construction.
The World Bank noted that this financing package can strengthen Turkey's energy self-sufficiency, enhance the competitiveness of its domestic manufacturing sector, and create numerous jobs in the new energy field. This funding is also part of the World Bank's broader clean energy support program for the Europe and Central Asia region, totaling nearly $3 billion. Turkey's practical experience in the solar, wind, and storage sectors can also serve as a reference for other countries advancing their energy transitions.
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