Export credit agencies of the U.K., Export Finance (UKEF) and Poland’s KUKE, have jointly guaranteed a loan worth 249 million euros ($272 million) for Turkish renewable energy investment company Kalyon Enerji, enabling the construction of Türkiye's second-largest solar project to date, UKEF said on Thursday.
According to the announcement, this deal is expected to support U.K. 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-Niğde, Gaziantep and Şanlıurfa-Viranşehir 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 U.K. 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 U.K. supply chain.
On the other hand, Polish exporters will deliver security systems and steel components for the project, which will also create jobs in the 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 euros 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," Gareth Thomas, U.K. minister for exports, said.
"This announcement will support jobs and businesses nationwide, especially in the Midlands, and support the global transition toward cleaner energy. It also demonstrates how U.K. Export Finance can help businesses grow, export and boost economic growth."
"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.