EBRD, AIIB and BSTDB to allocate $350M for Turkey’s largest geothermal power plant

Three major development banks, the European Reconstruction and Development Bank (EBRD), Asian Infrastructure Investment Bank (AIIB) and Black Sea Trade and Development Bank (BSTDB) are helping Turkey diversify its energy mix with an investment adding close to 100 MW in capacity to EFELER, the country’s largest geothermal power plant, Trend reports citing EBRD.

The three banks are contributing to a financial package worth $350 million for three new units at the plant.

EFELER is located in western Turkey, in the region of the Büyük Menderes Graben basin, the area in Turkey with the greatest potential for geothermal energy.

Gürmat Elektrik, a renewable energy subsidiary of Güris Holding, is using the finance for the expansion at EFELER that will tap into locally available geothermal resources.

Of the three new units, EFE-6 with 22.6 MW capacity and EFE-7 with 25 MW are already operational. EFE-8 with a capacity of 50 MW is still under construction.

When fully completed next year, the plant’s eight units will have a total installed capacity of 260 MW.

Under the financing package, Gurmat Elektrik will receive US$ 100 million loan from the AIIB, a US$ 60 million loan from the EBRD and US$ 20 million loan from the BSTDB.

In parallel, Turkey’s largest commercial lender Isbank is providing US$ 90 million loan, and the Industrial Development Bank of Turkey TSKB and ICBC Turkey are making loans of US$ 50 million and US$ 30 million, respectively.

The financing is part of the effort to help Turkey develop local renewable energy sources and encourage private sector investment in the energy sector. Güris Holding has also committed to providing more career opportunities for women in this traditionally male-dominated sector.