Financing of about $1 billion was provided for the energy sector last year, out of which 90% for renewables, by Turkey’s Garanti Bank, its executive vice president Ebru Dildar Edin told Anadolu Agency. This year the institution will focus on financing green energy projects, especially solar and wind, and increasing involvement in energy efficiency, she said, as quoted by AA Energy Terminal.
Garanti Bank targets financing renewable energy projects with a minimum of $1 billion a year, Edin said. Firstly, the bank closely surveys its own energy consumption, and with constant improvements it aims to lower the harmful effects to the environment, she said. With implementation towards increasing energy efficiency, the bank managed to reduce its total energy consumption by 10% in 2014, Edin added.
In addition to reducing its own energy demand, the bank finances energy efficiency projects in different sectors but the funds have been limited in this field so far, she emphasized. Edin expressed the need to collectively raise energy efficiency financing. Falling oil prices created uncertainty in the energy market and investors turned to renewables; a sector which is not usually exposed to market risks, she said. Energy has become increasingly important for banks in the last five to ten years, Edin said.
During the same period, a total of over USD 60 billion (EUR 55.1 billion) in financing was poured into the sector in Turkey – EUR 45.92 billion supplied by domestic companies and the rest by Garanti Bank, Edin stated. With the EUR 9.18 billion, the bank gained a 20% market share, she added. As energy will continue to hold a large place in banks’ agendas, Edin argued, wind and solar energy investments are expected to pick up pace this year, leading to renewables topping the banks’ lists for investment.