The Asian Infrastructure Investment Bank (AIIB) and the Industrial Development Bank of Türkiye (TSKB) have signed a USD65-million senior debt financing package to support the YEKA Erzin-2 Hatay Solar PV Project, each contributing USD32.5 million in financing.
The project will develop a 100-megawatt solar power plant in Hatay Province, Türkiye, awarded in June 2022 under the government’s Renewable Energy Resource Zone (YEKA) program, which promotes large-scale renewables through competitive tenders. Sponsored by IC Enterra Renewable Energy, a subsidiary of IC Holding with over 1,500 megawatts of diversified capacity, the plant will operate under a 30-year license and deliver clean electricity at competitive costs, supported by a tariff indexed to inflation and foreign exchange.
“This project reflects AIIB’s commitment to catalyzing private capital for climate-aligned infrastructure and supporting Türkiye’s long-term energy transition goals,” said AIIB’s Chief Investment Officer, Public Sector (Region 2) and Project and Corporate Finance (Global) Clients Konstantin Limitovskiy. “Our partnership with IC Holding and TSKB demonstrates the value of collaboration in advancing renewable energy capacity and fostering sustainable economic growth.”
The project is expected to bring significant benefits to Türkiye, including the reduction of greenhouse gas emissions up to 0.6261 tonnes of CO2 equivalent for every megawatt-hour of electricity generated. Consumers will benefit from an increased supply of renewable energy, which will be more affordable than energy derived from fossil fuels. The project will also create jobs and promote economic activity in Hatay Province, where the project is located.
“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,” said TSKB Chief Executive Officer (CEO) Ozan Uyar. “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.”
“We are pleased to sign the refinancing package for our YEKA Erzin-2 Solar Power Plant with the support of AIIB and TSKB. This 100-MW PV solar project expands our renewable portfolio beyond our nine hydroelectric plants, strengthening our commitment to Türkiye’s clean energy transition.” said IC Enterra Renewable Energy CEO Cem Aşık. “Despite the challenges of the February 2023 earthquakes, we remained steadfast in completing the project, while also contributing to recovery efforts in Hatay. The YEKA Erzin-2 Solar Power Plant now stands as both a source of renewable power and a symbol of resilience for the region.”
The project aligns with AIIB’s priorities of green infrastructure and private capital mobilization, while applying AIIB’s Environmental and Social Policy and Standards. Mitigation measures, including management plans, biodiversity and cultural heritage protection, and community engagement mechanisms, have been adopted to ensure the project’s sustainability and resilience.
