Garanti BBVA Urges Türkiye's Renewable Push

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by KnowESG
KnowESG_Garanti BBVA renewable energy in Türkiye
Image courtesy of Garanti BBVA

Garanti BBVA, a leading bank in Türkiye, continues to take the lead in promoting sustainability by allocating over $6 billion towards various renewable energy projects in 2022.

Recognising the potential of this sector in the country, Deputy General Manager Mahmut Akten emphasised the urgent need to accelerate investments in renewable energy.

The bank's substantial financial contributions and its vision of a future powered by renewable sources align perfectly with Türkiye's environmental goals and aspirations for sustainable energy production.

However, Garanti BBVA's assessment of the energy sector also highlighted the importance of expediting investments in wind and solar energy facilities. Akten pointed out that Türkiye's electricity consumption results in 480g of carbon emissions per kilowatt-hour (kWh), compared to the European average of 300g. He believes that reducing carbon emissions requires addressing the heavy reliance on electricity imports.

According to Garanti BBVA's estimates, renewable energy plants will constitute at least 74 per cent of Türkiye's total installed capacity by 2035, to achieve net-zero emissions no later than 2053.

Akten acknowledged the success story of renewable energy investments in Türkiye, with 42 per cent of electricity production in 2022 coming from renewable sources. Among these, solar energy accounted for five per cent, while wind energy contributed 11 per cent.

He attributed this success to the Renewable Energy Support Mechanism (YEKDEM), which has facilitated easier access to financing and enabled the rapid increase in Türkiye's installed capacity for renewable energy to 55 GW.

Furthermore, Akten praised the foreign currency-based base price mechanism incorporated in the YEKDEM programme, stating that it has played a crucial role in securing long-term and cost-effective foreign currency financing. However, he emphasised that Türkiye still has a long way to go, given its significant potential in the renewable energy field.

Looking ahead, Akten anticipates an upsurge in battery investments driven by tenders for stored wind and solar power plants. Garanti BBVA has observed considerable potential in this area, as evidenced by the growing number of license applications and financing requests from investors.

He also highlighted the importance of focusing on investments in storage, hydrogen, and other complementary areas alongside renewable energy as Türkiye's commitment to reducing carbon emissions gains momentum.

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Source: Garanti BBVA

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