Izmir, May 22, 2017– The World Bank Energy and Extractives Global Practice and the Energy Sector Management Assistance Program (ESMAP) are co-hosting the World Bank Geothermal Workshop and the second IGC Turkey Geothermal Conference in Izmir. The three-day event (May 22-24) has established itself as a meeting place for government, operators, developers, agencies and financiers to understand current market trends, explore growth opportunities, facilitate new relationships, and promote the exchange of knowledge and expertise in the field of Geothermal Energy.
The World Bank, through its ESMAP program and the Global Geothermal Development Plan, is supporting geothermal development globally, with a focus on scaling-up private sector investment in geothermal projects. The World Bank’s Board in November 2016 approved a project loan of $250 million and a Clean Technology Fund Grant of $39.8 million for a Geothermal Development Project in Turkey, which will help create renewable energy by tapping heat sources deep in the ground. The project aims to encourage private sector investment in geothermal energy development in Turkey by reducing risks for investors through a Risk Sharing Mechanism (RSM) and by providing access to long-term financing.
The IGC Turkey 2017 event will begin with the World Bank Geothermal Workshop on May 22, with discussions and presentations on the World Bank Turkey Geothermal Development Project. Discussions will include risk mitigation and funding mechanisms for resource development presented by our partners, TKB and TSKB, and in-depth training sessions on environmental and social safeguards and how to address greenhouse gas emissions from geothermal projects.
On day two, the World Bank will host a financing forum, which will feature the formal launch of the World Bank-financed Turkey Geothermal Development Project and other presentations on financing of geothermal projects. The day will conclude with discussions on greenhouse gas (GHG) emissions from geothermal plants, their impact, and methods of mitigation.
On day three, a Field Trip will take participants to several geothermal plants in the Menderes Graben.
At the start of the conference, Johannes Zutt, World Bank Country Director for Turkey, said the World Bank was pleased to help the Government of Turkey expand geothermal capacity in the country.
“Increasing renewable energy is critical to achieving energy security and climate change mitigation in Turkey. The renewable energy sector has been growing rapidly in Turkey over the past decades, and geothermal power plants, which use subterranean heat to drive turbines, can provide low-carbon baseload power to promote economic growth and boost prosperity,” said Zutt.
“With this in mind, the Turkey Geothermal Development Project was designed to provide geothermal developers in Turkey access to risk coverage at the exploration drilling stage, as well as commercial financing for capacity drilling and power plant construction”
The unprecedented growth of the geothermal sector in Turkey in the last decade was largely driven by private sector investments, but public de-risking of geothermal fields, through exploration drilling and financing from International Finance Institutions, also played a key role. In order to continue the growth of this vibrant sector it is critical to ensure that these pillars remain in place going forward.
For more information on the World Bank’s work in Turkey, please visit: http://www.worldbank.org/turkey
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