UK Export Finance (UKEF) and Poland’s export credit agency, KUKE, have jointly guaranteed a €249 million loan being arranged by Standard Chartered Bank for Turkish renewable energy investment company Kalyon Enerji, enabling the construction of Türkiye's second-largest solar project to date, UKEF announced on Thursday.
According to the announcement, this deal is expected to support UK jobs in the renewable-energy sector supply chain, particularly in the Midlands.
The project entails the construction and operation of solar power plants at seven separate sites, with an aggregate power generating capacity of 390 MWp (megawatt peak) in Bor-Nigde, Gaziantep, and Sanliurfa-Viransehir provinces. Upon completion, the project has the potential to produce sufficient renewable energy to supply electricity to more than 65,000 households in Türkiye annually.
British exporter GE Vernova, via its subsidiary UK Grid Solutions Ltd, will supply and install inverter stations, power-plant controllers and other critical equipment. This is expected to directly support British jobs at GE Vernova's Staffordshire site, as well as jobs in the wider UK supply chain.
On the other hand, Polish exporters will deliver security systems and steel components for the project, which also leads to creating jobs in manufacturing and logistics sectors.
The loan will be provided by Standard Chartered under the guarantee of UKEF and KUKE. UKEF provided a 100% guarantee for the financing, while €122 million of the financing was reinsured by KUKE.
With renewable energy already accounting for 54% of Türkiye's total installed electricity capacity, the new project will further enhance renewable energy availability in the country and fulfill UKEF’s commitment to promoting the global transition to low-carbon economies, the announcement stated.
'Our mission is to grow the economy, including through boosting exports so British businesses can sell their world-class goods and services around the world. This announcement will support jobs and businesses across the country, especially in the Midlands, and support the global transition toward cleaner energy. It also demonstrates how UK Export Finance can help businesses grow, export and boost economic growth,' Gareth Thomas, UK Minister for Exports, said.
'In 2023, we became fully operational in Kalyon Enerji’s Karapınar Solar Power Plant, which is the largest solar power plant in Türkiye and Europe, contributing 11% of the solar power generated in Türkiye. This is Kalyon Enerji’s second transaction with UKEF and GE Vernova, for the second largest solar project in Türkiye to date,' said Murtaza Ata, CEO of Kalyon Enerji.
By Basak Erkalan
Anadolu Agency
energy@aa.com.tr