Polat Enerji Secures $65 Million Loan For Renewable Energy Expansion In Türkiye

Polat Enerji Yatirimlari A.S., a prominent renewable energy company in Türkiye, has announced the approval of a $65 million senior loan from the European Investment Bank (EIB) to fund its ambitious green energy projects. The loan, with a tenure of up to seven years, will be supplemented by an additional $5 million from the Global Energy Storage Program, pending donor approval.

The loan proceeds will support the development and construction of several key projects:

1. Wind Capacity Expansion: A 30.8MW expansion at the Soma WPP, Geycek WPP, and Poyraz WPP sites.
2. Hybrid Solar Plant: A 46.6MW solar power plant co-located with the Geycek WPP, developed under hybrid power plant regulations.
3. Battery Storage Project: A 10.0MWh battery storage system also co-located with the Geycek WPP.

The project boasts a high Transition Impact (ETI score of 70) due to its innovative approach to combining wind, solar, and battery storage technologies, marking the first such hybrid plant in Türkiye. Additionally, the project aims to improve governance and accountability regarding climate-related risks and opportunities within Polat Enerji.

Classified as Category B under ESP 2019, the project underwent thorough Environmental and Social Due Diligence (ESDD) by independent consultants. Key environmental and social risks include effective E&S risk management, contractor management, supply chain risk management, occupational and community health and safety, labor management, and biodiversity impact monitoring.

The due diligence process confirmed that project sites are not located in sensitive or protected areas and do not lie on major bird or bat migratory routes. There are no significant cultural heritage concerns for the new investment sites, and a chance-finding procedure will be in place. Land acquisition was conducted through free market transactions and public lands, ensuring minimal disruption.

Polat Enerji has committed to enhancing its Environmental and Social Management System (ESMS), including appointing an external consultant to support the implementation of monitoring arrangements. Contractors will be required to adhere to stringent E&S requirements. The company will also develop a supply chain management system to ensure compliance with Environmental, Health, Safety, and Social (EHSS) standards.

Polat Enerji’s partnership with the EIB and the support from the Global Energy Storage Program highlights the company’s dedication to advancing Türkiye’s renewable energy sector. By setting an example in the industry, Polat Enerji aims to catalyze further investments in battery storage infrastructure and contribute significantly to the country’s green transition.