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The Climate Investment Funds (CIF) will mobilize some USD 1 bn in climate finance to support Turkey’s grid expansion program and is separately investing USD 70 mn in the country’s power transmission system, according to a press release. The concessional financing comes from the CIF’s Renewable Energy Integration (REI) investment platform.
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What is the plan? CIF, alongside the European Bank for Reconstruction and Development (EBRD) and the World Bank Group, hopes that this initial investment would help galvanize more than USD 1 bn more funding from other partners to support grid expansion efforts. The financial institutions’ plan is to put USD 790 mn towards the expansion of the national power transmission system through infrastructure, strengthening connections, and smart-grid technology. Another USD 330 mn will also be made available to enhance grid flexibility and add 7.5 GW of battery energy capacity.
Where does CIF’s money fit in Turkey’s strategy? Turkey recently released a new renewable energy strategy (pdf) outlining investment plans up until 2035. One component of the plan is to mobilize USD 28 bn investments for grid infrastructure that are set to extend AC lines, increase transformation centers, and more than triple the connection capacity. CIF’s funding would jumpstart Turkey’s big investment plans in infrastructure, which is essential to accommodate the planned 60 GW of additional wind and solar capacity by 2035.
What is CIF? The CIF is one of the world’s largest multilateral funds assembled to help developing countries with climate change mitigation. The group operates in 81 countries and receives funding from governments and the private sector.
The fund is active in MENA emerging economies: CIF has financed 17 projects in seven countries, channeling over USD 860 mn in financing towards investments in solar and wind farms in Egypt and Morocco. The fund is projecting its financing in the region to exceed USD 12 bn in the following years, according to its website.
