The Industrial Development Bank of Türkiye (TSKB) has secured a €50 million loan from the OPEC Fund [1] for International Development (OPEC Fund) to support the growth of Turkey’s renewable energy sector. This financing agreement, the first collaboration between TSKB and the OPEC Fund, aims to accelerate Turkey’s transition to a low-carbon economy by funding key projects in renewable energy, energy efficiency, climate adaptation, and circular economy investments.
The loan, provided through an on-lending arrangement with the Turkish Ministry of Treasury and Finance, will play a crucial role in supporting Turkey’s sustainable and inclusive development goals. Geothermal energy, a significant component of Turkey’s renewable energy mix, stands to benefit from this financial boost. Geothermal projects contribute to energy security, carbon emission reduction, and sustainable growth, making them essential for Turkey’s green transformation.
TSKB General Manager Murat Bilgiç emphasized the importance of diversifying sustainable finance resources to support Turkey’s green transition goals. He highlighted that the loan agreement with the OPEC Fund would create new funding opportunities for geothermal power plant investments, furthering Turkey’s efforts to achieve its 2053 net-zero targets.
OPEC Fund President Abdulhamid Alkhalifa underscored the significance of this partnership in advancing climate action and sustainable development in Turkey. He noted that the financing would improve access to capital for the Turkish geothermal sector, promoting low-carbon energy sources in the fight against climate change.
As TSKB’s geothermal investment support becomes clearer, industry players will gain a better understanding of how to benefit from such funds. This loan agreement is expected to create a positive impact on Turkey’s renewable energy sector, fostering growth and innovation in geothermal energy projects.
Sources:
[1] OPEC Loan to Boost Turkish Renewable Sector, Including Geothermal Energy https://www.thinkgeoenergy.com/opec-loan-to-support-turkish-renewable-sector-including-geothermal-energy/