World Bank Provides $748 Million for Turkey's Clean Energy Transition
World Bank allocates 748 million dollars for upgrading Turkey's electricity network infrastructure
The World Bank has approved a substantial concessional financing of $748 million to support Turkey in modernizing and expanding its electricity transmission infrastructure. This project, known as the Transforming Power Transmission System Project (TPTS), will boost the integration of renewable energy sources into Turkey's national power grid.
The TPTS has three strategic components: upgrading transmission infrastructure, digitalizing the power grid, and providing technical assistance for innovation. These components aim to eliminate operational constraints in Turkey's electricity transmission system, enhance infrastructure to connect new renewable energy-based power generation facilities to the grid, and promote domestic renewable energy production.
The financing consists of a $707.9 million loan from the International Bank for Reconstruction and Development, a $38 million loan from the Clean Technology Fund, and a $2 million grant from the Clean Technology Fund. The funds are backed by a repayment guarantee from the Turkish Treasury and Finance Ministry.
Şimşek, the Minister of Energy and Natural Resources, welcomed the new agreement and highlighted the productive cooperation between Turkey and the World Bank, particularly in the energy sector. He emphasized that the financing will contribute to significant reductions in greenhouse gas emissions and support the creation of thousands of jobs across Turkey's renewable energy value chains.
The TPTS is aligned with Turkey's 12th National Energy Plan and climate commitments. It continues a successful partnership between Turkey and the World Bank in the energy sector, as stated by Şimşek. The project is part of Turkey's broader efforts to strengthen energy security and reduce reliance on imported fossil fuels.
The project will be implemented by the Türkiye Electricity Transmission Corporation. Humberto Lopez, World Bank country director for Turkey, stated that the project enhances Turkey's energy security, reduces fossil fuel import dependency, improves its competitiveness, and develops new industries with the potential to create a large number of skilled jobs.
Turkey's renewable energy strategy targets 120 gigawatt of installed wind and solar capacity by 2035, aligning with the government's net-zero emissions target by 2053. The TPTS is a significant step towards achieving these ambitious goals, supporting Turkey's clean energy transition and climate resilience objectives.
- The World Bank's $748 million funding for Turkey's Transforming Power Transmission System Project (TPTS) focuses on increasing Turkey's renewable energy sources in its national power grid, promoting the integration of clean energy.
- The TPTS, backed by a loan from the International Bank for Reconstruction and Development and additional funding from the Clean Technology Fund, intends to eliminate operational constraints, enhance infrastructure, and foster domestic renewable energy production.
- The TPTS, part of Turkey's 12th National Energy Plan and climate commitments, aims to reduce greenhouse gas emissions, creating thousands of jobs across Turkey's renewable energy value chains, as highlighted by Minister Şimşek.
- The alignment of Turkey's renewable energy strategy with the World Bank's finance supports the country's goal of reaching 120 gigawatts of installed wind and solar capacity by 2035, thereby contributing to the commitment to achieve net-zero emissions by 2053.
- By enhancing energy security, decreasing reliance on imported fossil fuels, and stimulating the development of new industries, the TPTS promises benefits for Turkey's environment, energy, industry, finance, and business sectors, accentuating Humberto Lopez's statement about the project's overall impact.
