Akfen to use EBRD, IFC funds for hydroelectric power development

Akfen Holdings Signing

The European Bank for Reconstruction and Development and International Finance Corporation have provided US$200 million in capital to Turkish infrastructure group Akfen Holding that will be used to expand its portfolio of renewable generating assets, including hydroelectric power projects.

The deal gives both the EBRD and IFC a 16.675 share in Akfen's recently established subsidiary, Akfen Renewable Energy, and is intended to help the group increase its renewable portfolio by 1,000 MW via hydro, solar and wind projects.

"We at the EBRD believe strongly in the long-term fundamentals of the Turkish economy in general, and in the potential of the country's power market in particular," EBRD First Vice President Phil Bennett said during a joint press conference in London last week. "Turkey remains reliant on imported fossil fuels, and we welcome the government's efforts to promote sustainable renewable energy. The EBRD and IFC support will enable Akfen to make a major contribution to the country's renewable energy sector."

Akfen Renewable Energy's hydropower fleet includes 15 plants with a total installed capacity of 340 MW, of which 204 MW are operational, 24 MW are under construction and the remainder are in development, according to the group's website. Akfen also said it has 14 projects that are being assessed and in the pre-license stage that, if built, will have a cumulative capacity of 984 MW.

"By stepping up our partnership with the EBRD and IFC, we plan to become one of the key investors in Turkey in the field of renewable energy," Akfen Holding chair Hamdi Akin said. "Our goal is to create a brand-new, leading platform which will generate energy from local renewable energy sources, and in which corporate investors can become partners."

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