$1 billion gas power plant will be built in TurkeyStaff writer ▼ | December 4, 2014
A $1 billion combined-cycle gas turbine power plant will be built in Turkey near the city of Kirikkale in Central Anatolia, some 50 km east of Ankara, with a package arranged by the European Bank for Reconstruction and Development (EBRD).
The largest investment Near the city of Kirikkale in Central Anatolia
With a capacity of 950 MW, the project will be able to cover half the energy needs of a city the size of Ankara and will help meet Turkey's ever-growing demand for reliable energy.
The EBRD has played a key role in securing long-term financing for the construction of the new plant by arranging a syndicated loan of $250 million: $200 million for the EBRD's own account and $50 million syndicated to Banque Saudi Fransi which in addition, is providing parallel financing of $100 million under a murabaha Islamic financial instrument.
The International Finance Corporation (IFC) is also providing a syndicated loan of $170 million, of which $45 million is syndicated to the Korea Development Bank.Korea Eximbank and Standard Chartered Bank, with cover from Korea Eximbank, are joining as parallel lenders with $90 million and $60 million respectively.
The state-of-the art gas-fired power plant will use a combined cycle in which natural gas is fed into a gas turbine that generates electricity, while the waste heat of the exhaust is captured to produce steam. This, in turn, drives a steam turbine which produces additional electricity, all for the same fuel input.
The integration of these two thermodynamic cycles improves overall efficiency for electricity generation, significantly reducing fuel costs for each kWh of electricity produced.As an independent power producer, the plant will operate on a merchant basis, selling the electricity it generates on the power market.
The power this plant will produce is expected to replace more carbon-intensive energy generation in Turkey and will lead to an annual CO2 emissions reduction of over 1,825,000 tonnes. Investing in sustainable energy is a priority for the EBRD in Turkey. ■