EBRD working on geothermal energy deals through Pluto


January 25, 2016





January 25, 2016




A national financing programme brought three geothermal developers based in the western part of Turkey to talks with the European Bank for Reconstruction and Development, Anadolu Agency’s Energy Terminal reported, quoting Adonai Herrera-Martinez, senior manager in the institution’s energy efficiency and climate change team. He added negotiations with two more firms are expected to start by the end of the first quarter.

EBRD developed Pluto (Private Sector Early Stage Geothermal Development Framework) to finance exploration activities and to provide technical assistance in applying best global practices, hence reducing technical risks at this stage, Herrera-Martinez said. The bank supports renewable energy projects in Turkey through equity and debt financing. “Turkey has huge potential across all renewable energy sources and the EBRD stands ready to support all of them. Geothermal energy presents specific challenges in terms of early stage development, hence the development of Pluto, a dedicated facility to address this technology’s specific barriers,” Herrera-Martinez underlined.

He explained that once Pluto’s funds of USD 125 million (EUR 112.3 million) are fully allocated, EBRD could potentially consider mobilizing additional grant-based funds to be able to look into more projects. He noted that the geothermal sector is expanding in Turkey and the installed capacity has increased sixfold since 2009. “The increase in installed capacity is due to a combination of factors, starting with regulatory improvements which spurred renewable energy investment, followed by better management of risks associated with this technology. EBRD’s newest initiative to promote geothermal energy generation, Pluto, falls within these measures to mitigate risks and accelerate investments, as does the streamlining of the current renewable energy licensing regime – an endeavour in which the bank is currently working together with the Ministry of Energy and Natural Resources,” Herrera-Martinez stated.

He concluded EBRD also intends to maintain its strong interest in renewables this year through direct deals using both equity and debt loans and through partner banks. Last year the bank provided a EUR 180 million loan for Turkey’s largest geothermal power plant, Efeler. Previously, through Turkish commercial banks, it financed geothermal power plants Tuzla, Gümüşköy, Pamukören, Babadere, Alaşehir and Umurlu. At the end of last year, EBRD agreed to take a 20% stake through a capital increase in the renewables arm of Akfen Holding. The investment aims to help the newly created Akfen Renewable Energy to almost triple the size of its renewable portfolio to over 500 MW of installed capacity.

Related Articles

EU EUR 1 billion energy support package Western Balkans

EU launches EUR 1 billion energy support package for Western Balkans

07 December 2022 - The EU will back six renewable energy infrastructure projects in the Western Balkans with grants from a EUR 500 million package

roundtable solar locations mapping belgrade the nature conservancy

Mapping sustainable sites for 1 GW of solar power plants in Serbia

06 December 2022 - Sites for building solar power plants should be selected in line with sustainable development principles, according to experts working on the project Smart-from-the start planning for sustainable development - Mapping solar potentials

sarajevo toplotne pumpe ebrd grejanje

Sarajevo to introduce heat pumps technology in district heating system

06 December 2022 - The initiative for a heat pump project is a joint effort of the City of Sarajevo and the European Bank for Reconstruction and Development

MEP Kokkalis EU penalize coal power Western Balkans CBAM

MEP Kokkalis: EU shouldn’t penalize coal power in Western Balkans while producing coal-fired electricity itself

06 December 2022 - Many EU member states are prioritizing energy security over decarbonization and reviving retired coal power plants, MEP Petros Kokkalis said