• Profile
  • TSKB in Brief
  • TSKB's Subsidiaries
  • Products and Services Of TSKB
• Performance
  • Value Creation
  • Awards & Recognitions
  • CEO's Assessment
• Approach
  • TSKB's Sustainable Banking Strategy
  • TSKB's Sustainability Priorities
• Dialogue
  • TSKB and Stakeholder Engagement
  • TSKB's Stakeholders
  • 2010 Stakeholder Dialogue Highlights
• Sustainability and Environmental Issues
  • Sustainable Banking at TSKB
  • Sustainable Banking Performance: the Economic Dimension
  • The Renewable Energy Sector and TSKB
  • TSKB Energy Index
  • TSKB, Climate Change, and the Environment
  • TSKB's Efforts on Behalf of Sustainability and the Environment
  • Who Wouldn't Want to Be Sustainable?
  • ISO 14001 Certification
  • The Structure of the TSKB Environmental Management Team
  • TSKB's Environment Policy
  • TSKB's Environmental Impact
  • Sustainable Banking Performance: the Environmental Dimension
  • Developments in External Environmental Impact
• Corporate Governance
  • Absolute Compliance With Laws and Regulations
  • TSKB's Corporate Governance Structure
  • Compliance With Corporate Governance Principles
  • Risk Management at TSKB
  • Prevention of Money-Laundering and the Financing of Terrorism
  • Relations with Suppliers
• People
  • Human Resources and the Workplace at TSKB
  • The TSKB Performance Management System
  • TSKB Compensation and Reward System
  • TSKB Human Resources Structure
  • Human Rights and Employee Rights at TSKB
  • Competency Development and Training
  • Health and Safety at TSKB
  • Commuting By Sea
  • Internal Communication at TSKB
• The Community
  • Social Responsibility at TSKB
  • "Environment: Our Priority": Past and present
  • The NGOs that TSKB Collaborates with
• Summarized TSKB Goals and Performance
• Appendices
  • About This Report
  • Statement GRI Application Level Check
  • Global Reporting Initiative Cross Index
  • Online Sustainability
  • Imprint
  • Communication and Service Channels

THE RENEWABLE ENERGY SECTOR AND TSKB

Paralleling the growing worldwide urgency of global warming and climate change issues, both the renewable energy and the environment and energy efficiency sectors have emerged to the fore during the last decade. This has created an important new avenue of business and source of potential liability for the world’s financial services providers.

Having made its strong foresight an essential component of its corporate strategy, in 2003 TSKB identified renewable energy as one of the key sectors that were essential to the support of Turkey’s sustainable development and to the transition to a low carbon economy. The Bank decided to devote increasingly greater attention to that business line and in the seven years since then, the renewable energy and power distribution sectors and energy efficiency projects came to account for a significant share of TSKB’s loan book.

As of end-2010, TSKB had performed detailed reviews and assessments of more than 200 projects and remained the leading supplier of renewable energy financing in Turkey as measured by the number of projects given support. Between 2003 and 2010, the number of energy sector projects financed by TSKB reached 95.

The total installed capacity of the renewable energy projects financed by TSKB amounts to 2,930 MW. This corresponds to 17.4% of Turkey’s total installed renewable energy capacity as well as to 6% of its overall installed capacity.

The most important attribute shared by all of the energy projects which TSKB finances is that they are intended to serve the country’s move away from predominantly fossil-fuel energy production in favor of renewable energy resources.

The most important attribute shared by all of the energy projects which TSKB finances is that they are intended to serve the country’s move away from predominantly fossil-fuel energy production in favor of renewable energy resources. When the projects financed by the Bank are brought to completion, they will have reduced Turkey’s total CO₂ emissions by more than 6 million tons a year.

As of end-2010, 40 of these 95 projects had been completed and had begun generating electricity. The total installed capacity of these commissioned projects is around 831 MW.

Between 2003 and 2010, TSKB provided financing for energy project whose aggregate investment value amounted to USD 5.3 million. Of this amount, TSKB committed itself to providing a total of USD 1.6 billion as credit.

Focusing on energy efficiency projects
As part of its sustainable banking strategy, TSKB added energy efficiency project finance as well to its product and service lineup in 2009. Since then the Bank has been rapidly expanding its service capacity in this business line. After financing three energy efficiency projects in 2009, TSKB brought the total number to 17 with the addition of another 14 in 2010.

The next chart shows summarized information about numbers and installed capacities of the energy projects being financed by TSKB as of end-2010 broken down by primary category.

Type	# Plants	Total installed capacity (MW)
HPP	85	2,672.8
GPP	2	57.7
WPP	6	167.8
Biomass plants	2	32.2
Total	95	2,930.5

Islamic Development Bank support for renewable energy end energy efficiency investment projects
On 23 June 2010 an agreement was signed in Baku with the Islamic Development Bank (IDB) to finance renewable energy and energy efficiency projects that are to be undertaken throughout Turkey. This agreement, which provides for a total of USD 100 million in financing, is guaranteed by the Undersecretariat of the Treasury. TSKB will be acting as an intermediary in the use of this credit facility, drawdowns of which it will be underwriting by issuing letters of guarantee in favor of the borrowing firms. TSKB has also been granted exclusive authority to evaluate and select the projects that will be making use of this credit facility.

Two new credit agreements with KfW
In 2010, TSKB signed two new long-term credit agreements with the German Development Bank.

These KfW agreements provide for a total of EUR 55 million in credit that is to be used to finance investments aimed at improving the energy efficiency, use of renewable energy, and reduction of greenhouse gas emissions by private sector firms everywhere in Turkey. They represent the third phase of the “Renewable Energy Support, Energy Efficiency, and Greenhouse Gas Emissions Reduction Credits” (Turkey Climate Protection Program Credits) covered by earlier agreements dated 15 September 2008 and 30 December 2008.

Another credit facility in the amount of EUR 36.8 million obtained from KfW is to be used to finance municipal infrastructure investments undertaken throughout Turkey.