GE Energy Financial Services and UK Export Finance (UKEF), the UK’s export credit agency have secured an agreement to fund Kalyon Enerji’s 1.35 GW Karapinar solar project in Konya Karapinar region. The solar power plant is Turkey’s largest solar facility, which is around 11 km long and 3 km wide. GE Energy collaborated with UKEF, which will guarantee a $291 million buyer credit facility, pending financial completion.
This will allow GE to implement its first FLEX INVERTER solar technology outside of the United States, helping Turkey achieve its clean energy targets while also easing trade for UK suppliers. The FLEX INVERTER solar technology will be integrated and the solar power station will be assembled in the United Kingdom. GE’s Grid Solutions factory in Gebze, Turkey, will produce transformers for integration in the solar inverter system as part of the localisation criteria.
The export contract encompasses design, engineering, project management, site management, and commissioning in addition to GE’s solar technology. The project’s financing will be structured as project finance and raised through J.P. Morgan as acting lead arranger and lender, with the UKEF guarantee backing it up.
REGlobal’s Views: Turkey has extensive plans for increasing its solar power capacity which is supported by the impressive decline in costs of new solar power projects. Thus, the country has been attracting many developers and investors to increase their solar portfolios.