Turkey's Akfen Renewable Energy signed agreements with six local and international banks yesterday for a $363 million loan to construct 327 megawatts (MW) of renewable energy capacity in various Turkish cities. Speaking at the signing ceremony, Hamdi Akın, chairman of Akfen Holding, welcomed what he described is the biggest loan ever granted at a sitting for renewable projects in Turkey. "It [the loan] is also qualified as Turkey's first ‘green financing' in the energy sector," Akın said.

The total investment volume of the nine solar and four wind power plants amounts to $530 million, he said, adding that the company will spend $167 million in equity capital for these plants. The European Bank for Reconstruction and Development (EBRD), German KfW IPEX-Bank, Garanti Bank, Turkey's İş Bank, Vakifbank and Yapı Kredi Bank participated in providing the $363 million loan.

Akın said that thanks to these 13 new plants, the company, which currently has 253 MW of installed power capacity, will now increase this capacity to 574 megawatts. Nine of Akfen Renewable Energy's solar plants of 85 MW will be installed in the cities of Konya, Amasya, Tokat, Van and Malatya. The wind plants with 242 MW will be constructed in Canakkale and Denizli.

All the plants are expected to come online by 2020 with the aim to reach 1,000 megawatts of installed capacity by then, Akın said.