COUNTRY | Turkey
REGION | Europe
SECTOR | energy
QII Principles | Principle 1 Sustainable Growth & Development, Principle 3 Environmental Considerations
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 3: Environmental Impact Assessment, 3: Environmental Impact Mitigation, 3: Disclosure of environmental aspects, 3: Ecosystems, 3: Biodiversity, 3: Climate, 3: Emissions, 5: Social Impact Assessment
Overview
Cost: USD 101 million
Size: 72 MW greenfield
Parties involved: Alenka Enerji Uretim ve Yatirim A.S. (the borrower), Borusan EnBW Enerji Yatirim ve Uretim A.S. (the shareholder), ICBC Turkey and EBRD (co-lenders), Vestas (the turbine supplier and O&M contractor), TEIAS (system operator).
Relevant contractual details: Senior secured loan, 12-year term including grace period.
Context: The Project targets the Green TI Quality under GET Direct Track of EBRD.
Aim(s) of the project: Financing of development, construction and operation of a 72 MW extension to the 28 MW wind farm and refinancing of a leasing facility provided by a local leasing firm for the original wind farm.
Timeline
Start of construction works: September 2019 Signing: January 2020 Expected Commercial Operations Date: October 2020
Relevance to QII
Increased wind installed capacity: The extension of the Kiyikoy wind farm is a step towards Turkey’s objective of installing 27 GW of renewable energy capacity other than hydropower by 2023.
CO2 emissions reduced: The project will save approximately 99,700 tonnes of CO2 emissions per year.
Environmental risk mitigation: The Project is located within a major bird migratory flyway in Turkey. Given the sensitive location the Project was subject to an Environmental and Social Impact Assessment and disclosure. Additional biodiversity surveys were undertaken starting from the end of 2018 throughout 2019. The assessment has determined that the Project and existing wind farm present a low risk to migrating birds. This risk will be further mitigated to achieve no net loss through turbine shut down on-demand. Project turbine cut in speeds will be informed by monitoring of bat activity and bat mortality during 2020 and 2021.
Benefits
Renewable electricity produced: The project will generate over 200 GWh/year additional wind powered electricity.
Metrics
- Quarterly O&M report during first two years of operations.
- Annual updates to Environmental and Social Action Plan.
- Quarterly E&S monitoring during construction phase prepared by the independent environmental and social consultant.
- Quarterly construction monitoring report prepared by the independent technical advisor.
Name of Institution
European Bank for Reconstruction and Development
Website URL