Arab News | European Bank for Reconstruction and Development to invest $6bn in Turkiye’s clean energy platform

RIYADH: The European Bank for Reconstruction and Development plans to invest $6 billion over five years in Turkiye’s new renewable energy platform, REACT, launched at COP31.

The Renewable Energy Acceleration and Clean Transition program aims to mobilize $300 billion in investment across the renewable energy value chain by 2040, in line with the COP31 goal to increase electricity’s share of global final energy consumption to 35 percent by 2035.

Turkiye’s installed electricity capacity reached 126 gigawatts at the end of June, of which 79 GW came from renewable sources, according to the country’s Ministry of Energy and Natural Resources.

Solar capacity stood at 27.2 GW and wind at 15.2 GW, together accounting for 33.7 percent of the total.

“The EBRD has a substantial footprint in Turkiye’s energy sector, and we stand ready to build on this experience by mobilising investment and deploying our expertise to support the country’s energy transition,” said Odile Renaud-Basso, EBRD president.

She added: “Turkiye has set ambitious targets for its energy transition, and we welcome the determination it is showing to translate this ambition into investment and action.”

Shaping the platform

The bank played an active role in designing REACT, working closely with the Ministry of Energy and Natural Resources to support its establishment.

“We are proud to build on our close collaboration with our Turkish partners to establish this platform by becoming one of its initial signatories,” Renaud-Basso added.

“Drawing on our experience and commitment to Turkiye’s TIDIP, we will continue to support the country’s path towards a more resilient and competitive economy, underpinned by secure, affordable and sustainable energy.”

Wide international backing

The platform is also supported by the EU, the World Bank and the International Finance Corp.

Other backers include the Glasgow Financial Alliance for Net Zero, the International Bank for Reconstruction and Development, the Climate Investment Funds, and Kreditanstalt fur Wiederaufbau, as well as the Powering Past Coal Alliance, the Royal Danish Embassy and the UN Industrial Development Organization.

Targets for 2040

Ahead of COP31, Turkiye announced more ambitious targets for its energy vision, aiming to reach 175 GW of installed solar and wind capacity by 2040.

Achieving this will require coordinated action across renewable generation, grids, and storage, as well as policy reform, project development, financing and domestic supply chains.

The platform will support the system-wide transformation of Turkiye’s energy sector by accelerating renewable deployment, enabling integration at scale, advancing electrification and mobilizing finance for priority investments. Its scope covers generation, grid infrastructure, energy storage, flexibility solutions, manufacturing and electrification.

The EBRD is one of Turkiye’s largest institutional investors, having invested more than €26 billion ($28.8 billion) in the country, largely in the private sector.