UK, Polish ECAs back Kalyon Enerji's 390-MWp solar project in Turkey

The UK government's export credit agency (ECA) UKEF and its Polish counterpart KUKE have guaranteed a EUR-249-million (USD 272m) loan to support the construction of a 390-MWp solar project in Turkey and the supply chain jobs in their countries.

Standard Chartered Bank has arranged the loan for Turkish energy business Kalyon Enerji to build Turkey’s second-largest solar project to date, sourcing some of the key equipment from UK and Polish exporters, UK Export Finance (UKEF) said on Thursday.

UK Grid Solutions Ltd, a subsidiary of GE Vernova Inc (NYSE:GEV), will supply and install inverter stations, power-plant controllers and other critical equipment, while Polish exporters will delivery security systems, including software and equipment, and steel components for the mega-project.

The arrangement, according to UKEF, will directly support UK green jobs at GE Vernova’s site in Staffordshire and create jobs for the Polish partners in manufacturing and logistics sectors.

Kalyon Enerji will use the opportunity to build solar farms at seven separate sites across the provinces of Bor-Nigde, Gaziantep and Sanliurfa-Viransehir. Once powered up, these plants will have the potential to generate enough electricity to supply over 65,000 households in Turkey.

The financing is guaranteed by a 100% UKEF guarantee, with over EUR 122 million reinsured by KUKE, the UK ECA said.

The latest transaction is separate from UKEF’s guarantee provided in 2021 for Kalyon Enerji’s Karapinar solar project, the largest such project in Turkey and Europe, and which also involved GE Vernova in its previous incarnation.

The Karapinar solar plant became fully operational in 2023, Kalyon Enerji’s CEO, Murtaza Ata, said in UKEF’s press release.

(EUR 1.0= USD 1.093)

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