Gurmat Elektrik has signed debt financing for the development of the 123 MW Efeler geothermal project in Turkey.
The total project investment is estimated at US$970 million. The sponsor had plans to commit about US$220 million in equity, and was seeking US$750 million in debt, but so far it has raised a total of US$850 million in debt.
Financial close is expected to take place within the next month. The Black Sea Trade and Development Bank is one of the banks that have provided financing for the project.
Construction works has already begun and the project is expected to be operational by June 2015.
Installed capacity of geothermal power energy grew faster in Turkey than anywhere else in the world. The sector went from 30 MW in 2008 to 405 MW at the end of 2014, which is a compound annual growth rate of 54% compared to 4.5% globally. The Turkish government has plans to increase geothermal power to 1 GW by 2023.