A UK-backed loan to build a major Turkish solar project will provide work for the UK’s renewable-energy sector supply chain.
Export credit agency UK Export Finance (UKEF), along with its Polish counterpart KUKE, guaranteed a €249 million (£213.5m) loan to Turkish renewable energy investment company Kalyon Enerji.
The funds will be used to build a series of solar farms with a combined capacity of 390MW across seven separate sites in the provinces of Bor-Nigde, Gaziantep and Sanliurfa-Viransehir.
UKEF said the deal will support UK jobs in the renewable energy supply chain, particularly in the Midlands.
GE Vernova – via its subsidiary UK Grid Solutions Ltd – will supply and install inverter stations, power-plant controllers and other critical equipment from the company’s Staffordshire site.
Once complete, the project will be Turkey’s second largest solar project to date.
UK Minister for Exports Gareth Thomas said: “Our mission is to grow the economy, including through boosting exports so British businesses can sell their world-class goods and services around the world.
“This announcement will support jobs and businesses across the country, especially in the Midlands, and support the global transition toward cleaner energy. It also demonstrates how UK Export Finance can help businesses grow, export and boost economic growth.”
In addition, Polish exporters will deliver security systems (including both software and equipment) and steel components for the project.
The financing is guaranteed by a 100% UKEF guarantee, with over €122m (£104.6m) reinsured by KUKE, Poland’s export credit agency.
Chief executive of Solar Energy UK Chris Hewett added: “It’s great that the government is recognising the potential for UK supply chain companies in the solar sector. The Solar Taskforce will be exploring ways the government can grow these market opportunities further.”
Recommended for you
