In its first direct equity investment in Turkey’s power sector, the European Bank for Reconstruction and Development (EBRD) is acquiring a 20 per cent stake in the renewable energy subsidiary of Akfen Holding, one of the leading infrastructure groups in the country. The US$100 million investment will provide a further boost to Turkey’s renewable energy sector.
Akfen Yenilenebilir Enerji (Akfen Renewable Energy or AkfenRE) will own a portfolio of renewable projects, including operational hydro and solar power plants and several wind, solar and hydro projects under development, with a total operational capacity of 210 MW.
The EBRD investment will help AkfenRE to almost triple the size of its renewable portfolio to over 500MW of installed capacity and to become one of the largest producers of renewable energy in Turkey. As a shareholder, the EBRD will nominate a member for the board of AkfenRE and will help further advance the company’s corporate governance and competitiveness.
Nandita Parshad, EBRD Director for Power and Energy Utilities, said:
“We are pleased to enter into a strategic partnership with Akfen to scale up the development of renewable sources of energy in Turkey. We already have a strong relationship with Akfen in a number of sectors and look forward to success as partners in the energy sector. Turkey has set itself ambitious targets. We will be part of the solution.”
Süha Güçsav, CEO of Akfen Holding, added:
“Energy investments play a key role for our company’s growth and the EBRD funds will be used to strengthen our activities in the area of renewables. We are in the process of developing a balanced portfolio in the medium to long-term with sustainable generation in all segments of the energy sector. To achieve this goal we are planning to continue diversifying by investing in hydro, wind and solar projects. The shareholder agreement with the EBRD is one of the main steps for us in this process.”
Turkey is working to meet growing domestic demand for electricity and the country aims 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.