Funding secured for 170MW Turkish geothermal plantby Paromita Dey on Jul 2, 2015
Gurmat Electric Generation has signed a $720m financing agreement with a consortium of banks in Turkey.
A unit of Guris Group, the company aims to fund for the construction of Turkey’s largest, and Europe’s second largest, geothermal power plant.
The 15-year financing package for the 170MW project includes $200m from European Bank for Reconstruction and Development (EBRD), and $325m from Turkiye Is Bankasi.
Turkiye Sinai Kalkinma Bankasi and Black Sea Trade and Development Bank will provide $130m and $65m financing for the project respectively.
Located near the western town of Germencik, in the Buyuk Menderes Graben, the Efeler geothermal plant features five units, of which three have been already commissioned.
The Efeler facility, which is planned to be completed by the end of this year, will increase Turkey's installed geothermal capacity by around 30%.
Turkey targets to add 34,000MW hydropower, 20,000MW wind energy, 5,000MW solar energy, 1,000MW biomass, and 1,000MW geothermal to its energy mix by 2023.
EBRD director for power and energy Nandita Parshad said: "If the country realised all of its potential of 4GW geothermal, it would be equal to adding a further 12-15GW of wind or solar power."
Turkey has so far developed 427MW of geothermal capacity.
Güris CEO Musfik Hami Yamanturk said: "We believe in the importance of using renewable resources and will reach a renewable portfolio of 1150MW by the end of 2018 when all projects that are currently under construction will become operational."