One of our primary objectives is to provide the necessary financing for the renewable energy industry which is making exponential progress with global scientific developments, and contribute to utilization of renewable energy potential of our country. We believe that renewable energy is an opportunity to prevent greenhouse gas emissions in Turkey in line with international goals and commitments and has the potential to create new jobs and minimize the environmental and social impacts of energy generation.
In Garanti’s Climate Change Action Plan, we committed to applying shadow carbon prices in the financial assessment of all fossil fuel-based or renewable energy investments and developing capacity building projects. To date, we maintained a 28.1% share in Turkey’s operating installed wind power capacity. The amount of cumulative financing provided to renewable energy investments increased by USD 1 billion, and exceeded USD 5.3 billion. As a pioneer in renewable energy finance in Turkey and as the Bank financed most wind power plants, carbon price application will allow us to prioritize renewable energy investments even more.
In 2018, the total emission reduction of operational wind power plants and hydropower projects that we financed was 5.0 million tCO2e based on the current average grid emission factor for Turkey.
As of December 31, 2018, Garanti Bank has allocated:
- USD 2.48 billion to wind power projects which will have a total installed capacity of 2,421 MW once fully operational
- USD 2.42 billion to hydropower projects which will have a total installed capacity of 3,607 MW once fully operational
- USD 263 million to geothermal power plant projects which will have a total installed capacity of 337 MW once fully operational,
- USD 210 million to solar energy projects which will have a total installed capacity of 260 MW once fully operational, and
- USD 15 million to biomass energy plant projects, which will have a total installed capacity of 24 MW once fully operational
In 2018, all of the project finance loans Garanti provided for greenfield power plants have been allocated to renewable energy projects.
With the Action Plan referred to above, Garanti also pledged that a minimum of 60% of the total funds allocated to greenfield energy production facilities will be directed to renewable investments. In 2016, Garanti Bank took its pledge one step further and committed to a renewable energy share at a minimum of 70% of the greenfield power sector financing
to be provided by 2020 in new project finance transactions. In 2018, this ratio was far exceeded as it reached 100% similar to previous years.