The Clean Energy Transition Fund (CETF) – the first of its type – will expand the capacity of Turkey and neighbouring countries in the Western Balkans and the Caucasus to tap into cleaner energy resources.
A specific feature of the Fund – which has a target size of EUR200M – is that it will increase the availability of much-needed equity capital and thus expand the market to meet the growing investment needs in energy projects in the region.
“The EBRD’s region of operations is rich in clean energy resources, but they remain largely unused. With our support, we will provide private developers of energy projects with capital and expertise to implement power projects in line with the governments’ ambitious clean energy targets,” said Alain Pilloux, EBRD Managing Director for Industry, Commerce and Agribusiness.
The Fund will support clean energy projects focusing on hydro, wind, geothermal, biomass and solar power. It will also provide financing for clean generation, energy efficiency equipment and service suppliers.
“This is a transaction that builds on the experience developed via direct EBRD investments and financings in clean energy projects in the region. Via the investment in this fund we want to capture an increasing number of projects and lead the transition towards a more de-carbonised energy mix,” said Riccardo Puliti, EBRD Managing Director for Energy.
Aygen Yayikoglu, Founder and Managing Director of Crescent Capital, added: “We are establishing CETF as a catalyst vehicle that will help build long-term assets with stable cash flows. These assets will become increasingly attractive for financial and strategic investors in the coming years, given the volatility in financial markets.”
The Fund will seek to make 10-15 equity investments with individual investment ranging from EUR5M up to EUR30M, while at least 70% of its operations will be performed in Turkey, with the remaining 30% in the Western Balkans and the Caucasus.
