The European Bank for Reconstruction and Development will pay US$100 million to acquire a 20% stake in the renewable energy subsidiary of Turkish infrastructure group Akfen Holding.
Akfen Yenilenebilir Enerji (Akfen Renewable Energy or AkfenRE) will own a portfolio of renewable projects, including operational hydro and solar power plants and several wind, solar and hydro projects under development, with a total operational capacity of 210 megawatts.
The EBRD investment will help AkfenRE to almost triple the size of its renewable portfolio to over 500MW of installed capacity and to become one of the largest producers of renewable energy in Turkey. As a shareholder, the EBRD will nominate a member for the board of AkfenRE and will help further advance the company’s corporate governance and competitiveness.
Turkey is working to meet growing domestic demand for electricity and the country aims to add 34 GW of hydropower, 20 GW of wind energy, 5 GW of solar energy, 1 GW of biomass and 1 GW of geothermal to its energy mix by 2023.