Continously increase the value that adds to society and environment
Garanti Bank considers financing of renewable energy projects a critical part of enabling Turkey to reduce its GHG emissions.
The Bank gives most support to wind and solar energy projects because of their minimal environmental and social effects and the positive contribution they make to the current account deficit of Turkey.Garanti Bank’s share in Turkey’s total installed capacity of wind power among Turkish Banks is 34%. As of December 2015, the total emission reduction of operational wind power plants that were financed by Garanti Bank was 5.7 million tCO2e based on using the grid emission factor based on latest available TEİAŞ data from electricity generation in Turkey.
As of December 31, 2015, Garanti Bank had allocated:
- US Dollar 2.13 billion to wind farm projects which will have a total installed capacity of 1.932 MW once all commissioned,
- US Dollar 1.65 billion to hydroelectric power plant projects which will have a total installed capacity of 2,131 MW once all commissioned, and
- US Dollar 204 million to geothermal power plant projects which will have a total installed capacity of 202 MW once all commissioned.
- US Dollar 21 million to solar energy projects which will have a total installed capacity of 23 MW once all commissioned.
More than half of the funding provided by the Bank to energy projects has been allocated to renewable energy generation projects.
As the biggest supporter of wind power investments in Turkey, Garanti Bank provided the financing of US$ 191 million to Geycek WPP, the largest wind power plant in Turkey, with an installed capacity of 168 MW. In addition, Garanti Bank also financed the largest wind power portfolio in Turkey. BorusanEnBW’s 180 MW wind farm portfolio was financed by Garanti with a US$ 211 million financing facility.
The increasing impact of climate change necessitates the timely transition to a low carbon economy. This urgency is reflected in the efforts of public institutions, the needs of our clients and priorities of society. Recent regulatory changes, making it possible to build unlicensed renewable projects up to 1 MW, have rendered PV-based electricity generation a viable option for investors as well as SMEs that are looking to reduce operational expenditure through self-generation. In line with this, Garanti has intensified its efforts to provide its customers with sufficient financing support and appropriate loan products to allow them to make the necessary investments and refurbishments. Garanti started working on a new loan product for PV systems in late 2013 and rolled it out in 2014. In order to more effectively monitor processes in scope of these new loan products, a new separate and specialized team was formed under the Project Finance Department in 2015 to provide financing and support to PV projects.