OPEC loan to support Turkish renewable sector, including geothermal energy
View from TSKB Building (Source: TSKB website)
Carlo Cariaga
26 Feb 2025
The Industrial Development Bank of Türkiye (TSKB) has signed a loan agreement with the OPEC Fund to support renewable energy growth in Türkiye.
The Industrial Development Bank of Türkiye (TSKB) has signed a €50 million loan agreement with the OPEC Fund for International Development (OPEC Fund) in line with its sustainable and inclusive development goals. The financing, aimed at supporting renewable energy, energy efficiency, climate adaptation, climate-related equipment manufacturing, and circular economy investments, may also present an opportunity for geothermal energy projects.
This loan, provided through the on-lending method by the Turkish Ministry of Treasury and Finance, marks the first collaboration between TSKB and OPEC Fund. The agreement aims to accelerate green transformation by financing key projects that support Türkiye’s transition to a low-carbon economy.
New financing opportunities for geothermal energy
Geothermal energy plays a crucial role in Türkiye’s renewable energy sector, contributing to energy security, carbon emission reduction, and sustainable growth. Supporting geothermal investments through such financial models could be essential in achieving these goals. Given TSKB’s past financial support for renewable energy projects, this new loan agreement is expected to create funding opportunities for geothermal power plant investments.
TSKB General Manager Murat Bilgiç highlighted that the loan diversifies sustainable finance resources and contributes to Türkiye’s green transition goals. OPEC Fund President Abdulhamid Alkhalifa emphasized that this partnership represents a significant step toward Türkiye’s 2053 net-zero targets.
This financing could improve access to capital for the Turkish geothermal sector, particularly in promoting low-carbon energy sources in the fight against climate change. As TSKB’s geothermal investment support becomes clearer in the coming period, industry players will gain a better understanding of how to benefit from such funds.
Source: TSKB via our Turkish language platform JeotermalHaberler
