The World Bank Group’s Board of Executive Directors approved financing of US$300 million from the International Bank for Reconstruction and Development (IBRD) and US$50 million from the Clean Technology Fund (CTF) for Turkey’s Renewable Energy Integration Project. According to Bank’s official statement, the project will be implemented by TEIAS, the Turkish electricity transmission company, with a guarantee from the Turkish Treasury.
Less than two weeks before the announcement, Martin Raiser, country director for Turkey of the World Bank said the country has a good chance of becoming an energy hub if it will maintain the gains made during the past decade.
Turkish authorities have taken major steps in the past 10 years to set up independent regulatory institutions to strengthen the rule of law and improve business opportunities. The World Bank is currently helping the Energy Ministry reform the natural gas market legislation. These efforts aim attracting competing sources of supply for Turkey’s domestic market and eventually for export to European markets. Having limited natural sources, Turkey is dependent on energy imports.
Renewable Energy Integration Project aims to help the country in meeting its increasing power demand by strengthening the transmission system and facilitating large-scale renewable energy generation.
“Turkey has considerable renewable energy potential. However, substantial public and private investment is needed to fully exploit this resource,” said Martin Raiser. “As the World Bank, we have supported Turkey’s energy sector reforms for over a decade, with the objective of making Turkey’s energy sector cleaner, more secure, and less dependent on imports. This project is another important step in this direction.”