EBRD co-finances country’s largest geothermal plant

Güriş Holding subsidiary’s Efeler geothermal project put its fourth, 22.5 MW binary cycle unit into use and the company secured a USD 200 million (EUR 180.6 million) loan by the European Bank for Reconstruction and Development, alongside additional 15-year loans of EUR 293.52 million from Türkiye İş Bankası AŞ (İşbank), EUR 117.4 million from Turkiye Sınai Kalkınma Bankası AŞ (TSKB) and EUR 58.7 million from the Black Sea Trade and Development Bank (BSTDB).

The plant’s five units are situated near the western town of Germencik, in the Büyük Menderes graben, the area in Turkey with the greatest potential for geothermal energy, EBRD noted in a report.

When completed later this year, the facility will reach 170 MW, making it one of the ten largest geothermal plants in the world, the bank said. It will also increase the amount of installed geothermal capacity in Turkey by about 30%. Turkey is aiming to add 34 GW of hydropower, 20 GW of wind energy, 5 GW of solar energy, 1 GW of biomass and 1 GW of geothermal to its energy mix by 2023. Only 427 MW of geothermal energy capacity has been developed, the report added.

Nandita Parshad, director for power and energy at EBRD, said: „Geothermal technology combines high efficiency with renewable energy and can also serve to satisfy baseload demand. If the country realized all of its potential of 4 GW geothermal, it would be equal to adding a further 12–15 GW of wind or solar power.”

Müşfik Hami Yamantürk, Güriş Holding CEO, added: „With this support, all the units of the Efeler geothermal plant will be operational by the end of this year, which will increase Güriş Holding’s total renewable capacity to over 435 MW. We believe in the importance of using renewable resources and will reach a renewable portfolio of 1150 MW by the end of 2018 when all projects that are currently under construction will become operational.”

Previously the EBRD has financed four geothermal projects through Turkish commercial banks. The bank is also planning to provide finance and advice for companies that are starting to invest in geothermal energy, helping them to minimize their exploratory, drilling, technical and financial risks, the report said.

With the support of the EBRD, the Turkish Ministry of Energy and Natural Resources has developed the first National Renewable Energy Action Plan in line with the European Union’s Renewable Energy Directive.