Turkish conglomerate Sabanci Holding's energy arm Enerjisa Uretim secured a loan exceeding USD 1 bn to finance 750 MW of wind energy projects, according to a disclosure. The company is set to repay the loan by 2034, with semi annual payments kicking off after an initial 1.5-year grace period.

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Where is the money going? The loan will be used to finance under-development wind power projects, such as Armutcuk, Akkoy, Hacihidirlar, and Uygar, located in Türkiye's western provinces of Canakkale, Aydin and Balikesir.

About the projects: The projects are under the Renewable Energy Resource Area 2 (YEKA-2) program with a total installed capacity of 1 GW, which is set to begin gradual operations by 1Q 2026. The company is currently working on financing the remaining 250 MW of the project.

The financiers: The loan is provided by a consortium of local and international financial institutions, including the US International Development Finance Corporation, JP Morgan, HSBC, Proparco, Deutsche Investitions- und Entwicklungsgesellschaft, KfW IPEX-Bank, and Akbank.

About the company: Enerjisa Uretim manages a total of 27 power plants in Turkey including nine wind plants, two solar plants, and 12 hydroelectric plants, according to their website.

IN OTHER RELATED TURKEY NEWS-

More YEKA tenders are coming: Five wind farm projects totaling 1.2 GW will be up for tender applications in January, a government statement said. Applications for the new Renewable Energy Resource Area (YEKA) RES-2024 tenders will be accepted on 21 January, 2025, with the initial floor price set at USD 55 MWh and a floor price of USD 35 MWh. The projects will be located in the provinces of Edirne, Kırklareli, and Sivas, with connection capacities ranging from 90-410 MW.

We saw this coming: Earlier this month, Turkey’s energy minister reportedly said that YEKA auctions were set to resume next year with a reformed process and a new strategy set to be announced later in October. The country’s National Energy Plan targets adding an average capacity of 3.1 GW in solar and 1.4 GW in wind power every year through 2035, with at least 2 GW of added renewable capacity per year.

REMEMBER- YEKA are tenders for renewable energy projects already planned in what is dubbed as “designated renewable energy resource zone.” The awardees of the YEKA tenders receive a subsidy scheme called the Renewable Energy Support Mechanism (YEKDEM) that includes price guarantees on the generated electricity.

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