UK and Polish credit agencies have teamed up to finance a €249 million loan for Kalyon Enerji’s solar project in Turkey. The project will build solar power plants across three provinces with a total capacity of 390 MWp.
Turkish Solar Project to Gulp $272 Million
In a significant boost to Turkey’s renewable energy sector, UK and Polish credit agencies have joined forces to finance a major solar project. The UK’s Standard Chartered Bank will provide a €249 million ($272 million) loan to Kalyon Enerji, a Turkish renewable energy investment firm. This financing deal is backed by UK Export Finance (UKEF) and KUKE, the export credit agencies of the UK and Poland.
Large solar farm Turkey
The funds will support the development of Turkey's second-largest solar energy project. The project will see the construction and operation of solar power plants at seven different locations across three Turkish provinces. These provinces are Bor-Nigde, Gaziantep, and Sanliurfa-Viransehir. With a total generation capacity of 390 megawatts peak (MWp), the project is set to make a significant impact on Turkey’s energy landscape.
Catering for 65,000 Households
Once completed, the solar plants will provide clean energy to over 65,000 Turkish households annually. This development is expected to play a crucial role in Turkey’s efforts to increase its renewable energy capacity. It also highlights the growing importance of sustainable energy solutions worldwide.
The economic benefits of the project extend beyond Turkey. The deal is expected to enhance clean tech exports from both the UK and Poland. In particular, the project is anticipated to create numerous job opportunities within the UK's renewable energy sector. The Midlands, in particular, will benefit from this job creation.
UK Grid Solutions Ltd will be responsible for supplying and installing key components of the solar project. These include inverter stations and powerplant controllers. The project is expected to directly support jobs at GE Vernova’s Staffordshire site. The impact will also be felt throughout the broader UK supply chain.
Polish companies will also contribute significantly to the project. They will supply essential security systems and steel components for the solar farms. This involvement reinforces Poland’s position in the global renewable energy market.
Addressing Global Energy Challenges
The €249 million guarantee is a major investment in renewable energy infrastructure. It underscores the commitment of the UK and Poland to fostering a cleaner and more sustainable energy future. Additionally, it highlights the power of international collaboration in addressing global energy challenges. The partnership between UKEF, KUKE, and Kalyon Enerji exemplifies how cross-border cooperation can drive innovation and stimulate economic growth.
Gareth Thomas, the UK Minister for Exports, expressed his support for the deal. He noted that it aligns with the new government's goals to grow the economy and boost exports. Thomas emphasized that the announcement would benefit businesses and create jobs, particularly in the Midlands. He also highlighted how UK Export Finance plays a role in helping businesses expand and drive economic growth.
Uday Mathur, global leader for capital markets at GE Vernova also praised the deal. He noted that it builds on a successful long-term partnership with UK Export Finance in Turkey. This partnership has allowed GE Vernova to offer competitive financing solutions for solar and storage technology.
Mathur added that GE Vernova has previously delivered approximately 2.8 gigawatts (GW) of solar capacity in Turkey. He expressed pride in delivering another landmark financing deal in the country through successful collaboration with Kalyon Enerji and UK Export Finance.
Overall, the financing deal for Turkey’s 390MW solar project marks a significant milestone in the global renewable energy sector. It demonstrates how international partnerships can drive progress in clean technology and sustainable development. The project not only supports Turkey’s energy goals but also strengthens economic ties between the UK and Poland, showcasing the far-reaching impact of global cooperation in the renewable energy industry.