Several nations around the world are developing new and pioneering renewable energy projects that could reshape the global market. However, securing financing for any renewable energy project can be challenging, even for the largest energy companies. The Asian Infrastructure Investment Bank (AIIB) and the Industrial Development Bank of Türkiye (TSKB) have recently agreed on terms to finance a 100 MW solar PV plant to support Türkiye’s clean-energy transition, which has been gaining momentum over the past few years.

The new project forms part of Türkiye’s Renewable Energy Resource Zone (YEKA) program

The new project will form part of a broader initiative by the Turkish government that aims to increase spending in its growing renewable energy sector. The AIIB and TSKB financing package to support the YEKA Erzin-2 Hatay Solar PV Project will be essential to the nation’s energy ambitions.

The pair of financial institutions will each contribute approximately $32.5 million in financing for the astonishing new solar project in the Hatay Province, Türkiye. The project has been sponsored by IC Enterra Renewable Energy, a subsidiary of IC Holding, and will operate under a 30-year license and deliver clean electricity at competitive costs.

“This project reflects AIIB’s commitment to catalyzing private capital for climate-aligned infrastructure and supporting Türkiye’s long-term energy transition goals. Our partnership with IC Holding and TSKB demonstrates the value of collaboration in advancing renewable energy capacity and fostering sustainable economic growth.” – AIIB’s Chief Investment Officer and Project and Corporate Finance (Global) Clients Konstantin Limitovskiy

The planned solar project will significantly benefit Türkiye’s renewable energy ambitions as the nation aims to catch up to the rest of the world. The project will enable the nation to reduce greenhouse gas emissions up to 0.6261 tonnes of CO2 equivalent, marking a positive investment in the renewable energy market, which has been growing at an astonishing rate in recent years.

The new solar project aligns perfectly with global ambitions to increase renewable capacity

For far too long, the world has relied on the conventional oil and gas sector to supply the necessary energy for everyday life. As the world faces the uncomfortable reality that the energy market is shifting to the renewable energy market, the question becomes, what will happen to the conventional oil and gas sectors in the years to come? Thanks to several nations investing in the solar sector, the future is looking as bright as the sun that powers the sector.

Türkiye’s energy consumers will benefit from an increased supply of renewable energy, which will be notably less expensive than traditional fossil fuel-powered energy resources. This exemplifies the global acceptance that the renewable energy market is set to overtake oil and gas production in the next decade or so, especially as nations aim to meet emission targets.

“This investment not only strengthens Türkiye’s clean energy capacity and reduces external dependency, but also contributes to the economic revitalization of Hatay, a region profoundly impacted by the earthquakes in 2023. With 92% of our loan portfolio aligned with the UN Sustainable Development Goals, we remain committed to supporting green, inclusive and resilient development across Türkiye.” – TSKB Chief Executive Officer (CEO) Ozan Uyar

The project aligns with AIIB’s priorities of green infrastructure development

The Asian Infrastructure Investment Bank has noted that the planned project aligns perfectly with the institution’s clean energy requirements and that the required emission mitigation measures have been substantial, to say the least. As some nations prepare for pioneering entries into the solar market, such as Bhutan, the global sentiment toward the renewable energy market is shifting, and the world will be better off for it once the renewable energy market overtakes the oil and gas sectors in the near future.