Europe to invest $275 million in geothermal energy

The Energy Director of the European Bank for Reconstruction and Development, Nandita Parshad, announced the bank's scheduled investments in Turkey's energy sector in 2015. Speaking to Anadolu Agency, Parshad noted that the development of geothermal energy in Turkey requires expensive investments and faces risks; therefore, the bank will be investing $150 million in a geothermal power plant that will cost a total of $970 million, which is currently being constructed in Germencik, in the province of Aydın, by Gürmat Elektrik Üretim AŞ. This plant is the second-largest geothermal power plant in the world and the largest in Turkey.

Parshad further highlighted that another $125 million will be invested in search and drilling operations for geothermal energy as well as granted to investors who will be assuming the preliminary effort and exploration for geothermal energy. A total of $100 million of this budget will be covered by the Bank's own funds, and $25 million will be provided by the Clean Technology Fund.

Emphasizing that while the geothermal potential of Turkey is four gigawatts, the established capacity is only around 350 megawatts. Parshad said that these funds will also provide technical assistance to investors in order to make better use of geothermal resources in electricity and heat production.

The Clean Energy Fund was founded in 2009 to provide funds to low-carbon technologies and decrease greenhouse gas emissions. The fund is managed by the World Bank and has received contributions from various development banks.