EBRD supports green power in earthquake-affected region of Türkiye

This article is brought to you in association with EBRD.

• EBRD loan to Enerjisa Enerji to rebuild and modernise electricity network in Toroslar region
• Region undergoing massive reconstruction, necessitating investments in the grid
• Project also includes installation of distributed renewable energy facilities

The European Bank for Reconstruction and Development (EBRD) is lending US$ 150 million (€128 million) to Türkiye’s leading electricity distribution, retail sales and customer solutions company, Enerjisa Enerji, to finance the reconstruction and modernisation of the electricity network in the earthquake-hit Toroslar region, as well as the development and construction of solar power plants.

The Toroslar region, which accounts for approximately one-third of Enerjisa Enerji’s total operations, was heavily affected by the earthquakes of February 2023, which caused widespread damage and more than 55,000 fatalities.

The earthquakes caused significant damage to the region’s electricity distribution network, necessitating sustained investment. In the immediate aftermath of the earthquakes, the EBRD announced a comprehensive two-year response package, with support totalling €1.5 billion, including credit lines for individuals and companies affected by the earthquakes, as well as investment in infrastructure, assistance for small and medium-sized enterprises and private-sector partnerships.

Enerjisa Enerji will use the EBRD loan to finance the rebuilding and modernisation of the electricity distribution network, contributing to the overall reconstruction efforts in the Toroslar region. The company will also install solar power plants offering sustainable energy solutions to its corporate customers.

This project showcases the EBRD’s commitment to Türkiye’s green agenda by helping to prevent distribution losses in the electricity network, as well as supporting the construction of renewable energy infrastructure – leading to significant reductions in carbon emissions.

The transaction also sees the launch of the Board Director Nomination Toolkit for Companies in Türkiye – an initiative led by the EBRD to promote diverse company boards, which help to ensure a wealth of perspectives at management level and sustainable long-term growth for the private sector.

Enerjisa Enerji will be joining forces with the EBRD to raise awareness of the Toolkit and will lead by example in the energy sector. The Toolkit is intended as a source of information and guidance on the board nomination and appointment process, helping companies to establish effective gender-diverse boards.

Matteo Patrone, the EBRD’s Vice President for Banking, said: “I have seen first hand that reconstruction in the Toroslar region is not a short-term task. It requires long-term commitment, clear strategic direction and the kind of trusted partnership that we have with Enerjisa Enerji. Reliable, sustainable power is fundamental to both human well-being and economic recovery.”

Philipp Ulbrich, the CFO of Enerjisa Enerji, said: “This long-term financing worth USD 150 million equivalent in Turkish lira is showing that Enerjisa Enerji is able to finance its profitable growth also within a challenging environment. Based on our strong balance sheet, our robust cash flow generating businesses, and our disciplined cost and interest management, Enerjisa Enerji continues to secure the long-term confidence of international financial institutions. Support from a globally respected institution like EBRD is not only a testament to our credibility but also reflects investor interest in the energy transition. The well established partnership with EBRD is strengthening our strategic steps toward sustainable growth.”

The EBRD is one of Türkiye’s key investors, with more than €22 billion committed through 495 projects and trade finance limits since 2009, largely in the private sector.