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 32% share in Turkey’s operating installed wind power capacity. Since 2014, the amount of cumulative financing provided to renewable energy investments increased by USD1 billion, and exceeded USD4.7 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. Therefore, 100% of the total resources allocated to new energy investments in 2016 was allocated to renewable investments. In the upcoming years, according to our goals stated in the Action Plan, we aim to maintain this level at a minimum of 60%.
As well as our pioneering position in the wind power market, we focus on developing alternative products in the solar energy market. Thanks to the new legal regulations that enable the use of renewable energy up to 1 MW without a license, investors looking for new job opportunities and SMEs trying to reduce operational costs can now generate electricity using solar energy. To meet this new need, we launched our credit product specially designed for solar energy systems in 2014.
For the unlicensed solar energy projects, which are crucial for local socio-economic development, in 2015 we founded a special team of experts under the Project Finance Department and financed solar energy projects that will reach 228 MW capacity when they will become fully operational Also, in 2016, the total emission reduction of operational wind power plants and hydropower projects that we financed was 6.3 million tCO2e based on the current average grid emission factor for Turkey. This means an increase of 11% compared to the previous year despite the decreasing average grid emission factor.
As of December 31, 2016, Garanti Bank has allocated:
- USD 2.35 billion to wind power projects which will have a total installed capacity of 2,135 MW once fully operational
- USD 2.02 billion to hydropower projects which will have a total installed capacity of 2,448 MW once fully operational
- USD 204 million to geothermal power plant projects which will have a total installed capacity of 202 MW once fully operational,
- USD 195 million to solar energy projects which will have a total installed capacity of 228 MW once fully operational, and
- USD 15 million to biomass energy plant projects, which will have a total installed capacity of 12 MW once fully operational
All of the fund that was provided to energy projects by the Bank was allocated to renewable energy projects in 2016.
In line with its Climate Change Action Plan, Garanti will continue to prioritize renewable energy in its energy portfolio. The bank takes its pledge a step further and commits to a renewable energy share at a minimum of 70% of its new power sector financing to be provided by 2020.