Turkey to modernize grid with USD 748M World Bank aid

Turkey has signed USD 748 million in concessional funding from the World Bank to improve and modernize its power transmission system, with special emphasis placed on incorporating large-scale wind and solar power projects.

The project dubbed the 'Transforming Power Transmission System Project' will be executed by state-run Turkey Electricity Transmission Corporation (TEiAS).

The finance is comprised of Euros 625 million (USD 708 million) from the International Bank for Reconstruction and Development (IBRD), Euros 33 million from the Clean Technology Fund (CTF), and a USD 2 million CTF grant.

A repayment guarantee for the financing will be provided by the Turkish treasury and finance ministry.

Key highlights:

• Turkey secures USD 748M from World Bank to upgrade power grid
• Project supports 2035 goal of 120 GW solar and wind capacity
• Funding aims to boost energy security and cut emissions

This project is a major milestone on the way to the Turkish government's renewable energy ambitions. It is complementary to the Ankara 2035 renewable energy plan, which seeks to deploy 120 GW of solar and wind capacity, and aligns with its overall 2053 net-zero target.

“This project will facilitate the unlocking of private investment and contribute to Turkey's ambition towards a modern and competitive energy industry," stated Humberto Lopez, World Bank Country Director for Turkey. He highlighted the transformative effect the project is anticipated to have in creating a greener and more efficient power system.

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The project will upgrade key parts of Turkey's outdated transmission system to be able to deal with the growing proportion of renewables in the national grid. It is likely to support energy security, cut greenhouse gas emissions, and enable private-sector investment in clean energy production.

With energy consumption growing and climate targets pending, Turkey's latest step evidences strong commitment to sustainable infrastructure development.