29 / 03 / 2015
US$ 350 million in credit lines to boost energy efficiency investments in residential sector.
A new US$ 350 million financing facility launched by the European Bank for Reconstruction and Development (EBRD) and the Clean Technology Fund (CTF) in Istanbul yesterday will boost investment in energy efficiency improvements in Turkish homes and help residents reduce their energy bills.
The Turkey Residential Energy Efficiency Financing Facility (TuREEFF) includes US$ 282.5 million from the EBRD and US$ 67.5 million from CTF and is a combination of long-term financial support to Turkish banks and technical advisory services to banks and home-owners to cut energy consumption and reduce household bills. The advisory services are financed by a US$ 10 million grant from the European Union and CTF.
Under TuREEFF the funds are on-lent to individual homeowners, groups of homeowners, housing associations, condominiums and cooperatives, as well as private service providers in the residential sector such as SME construction companies, housing management companies, vendors and installers of high energy-efficient home improvement equipment and materials.
The programme finances improvements such as thermal protection, more efficient heating, domestic hot water supply, air-conditioning, lighting, white goods as well as the development of renewable energy systems in buildings.
The launch event at the WOW hotel in Istanbul brought together representatives of Turkish government, the Turkish banks, construction companies, energy service companies, vendors, universities, civil society organisations and diplomatic community.
In his welcoming remarks, Jean Patrick Marquet, EBRD Director for Turkey, said: “At the EBRD we believe that investing in more energy efficient homes delivers high value for money. We encourage households across Turkey to make energy efficiency improvements in their homes. Financing and advice are currently available via Sekerbank and most recently through Isbank and we expect more local banks to join the programme in the near future.”
Sekerbank, a pioneer in energy efficiency and present throughout Turkey, has become the first bank to join the programme. It has received a US$ 60 million credit line, which includes US$ 12 million from CTF.
Isbank has also received $75 million financing package comprised of $60 million from the EBRD and $15 million from the CTF.
The residential sector has been identified as one of the most energy intensive sectors in Turkey, according to a World Bank study. According to data published by the Ministry of Energy and Natural Resources, it is estimated that there are potential energy savings of up to 30% in the building. Investing in saving energy in residential buildings will not only have a significant impact on reducing total levels of energy consumption in the country and the needs of import (Turkey currently imports 75 per cent of the energy it consumes), but will also give a boost to the economy through creating demand for efficient equipment, materials and implementation services.
- Arif Ergin