The Asian Infrastructure Investment Bank ( AIIB ) and the Industrial Development Bank of Türkiye ( TSKB ) have signed a US$65 million senior debt financing package to support the Yeka Erzin-2 Hatay Solar PV Project. Each bank is contributing US$32.5 million.

The project will develop a 100-megawatt solar power plant in Türkiye’s Hatay Province, awarded in June 2022 under the government’s Renewable Energy Resource Zone ( Yeka ) programme, which promotes large-scale renewables through competitive tenders.

Sponsored by IC Enterra Renewable Energy, a subsidiary of IC Holding, the plant will operate under a 30-year licence 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 Turkiye’s long-term energy transition goals,” says Konstantin Limitovskiy, AIIB’s chief investment officer, public sector ( Region 2 ), and project and corporate finance ( global ) clients. “Our partnership with IC Holding and TSKB demonstrates the value of collaboration in advancing renewable energy capacity and fostering sustainable economic growth.”

Emissions reduction

The project is expected to bring significant benefits to Türkiye, including reduction in greenhouse gas emissions of up to 0.6261 tonne 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.

“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,” says TSKB chief executive officer 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," adds IC Enterra Renewable Energy CEO Cem Asık. "This 100MW PV solar project expands our renewable portfolio beyond our nine hydroelectric plants, strengthening our commitment to Türkiye’s clean energy transition.”

The project aligns with AIIB’s priorities of green infrastructure and private capital mobilization, while applying AIIB’s environmental and social policy and standards.

The Industrial Development Bank of Türkiye was founded in 1950 as the first and only private-equity development and investment bank in Türkiye. TSKB’s loan portfolio almost entirely consists of funds allocated to the country’s investments in such strategic fields as renewable energy, energy and resource efficiency, environment, women’s employment, and access to inclusive finance.

IC Enterra currently operates nine hydroelectric power plants totalling 388MW. Additionally, the company plans to build a 546MW portfolio of wind and solar projects with integrated battery energy storage systems in the country.