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Approximately 56% of Türkiye's electric power generation capacity consist of renewable energy, including hydroelectric, wind, solar, geothermal, and biomass power plants, making Türkiye the fifth-largest generator of renewable energy in Europe and the 11th largest in the world.
As of January 1, 2023, Türkiye had six refineries with a combined processing capacity of over 826,000 b/d. Türkiye Petrol Rafinerileri AŞ (Tüpraş) operates four of the six refineries and accounts for 71% of the total refining capacity, and Ersan Petrol Sanayi AŞ and STAR Rafineri AŞ collectively hold 243,000 b/d of refining capacity.12
Source: Ministry of Energy and Natural Resources, State Institute of Statistics. Türkiye, with an electric power generation capacity of approximately 105 GW, is Europe's sixth-largest electricity market and the 14th largest in the world.
Moreover, there have been significant investments in battery technologies, specifically targeting the storage and the effective use of energy from volatile sources such as wind and solar power. Various projects are underway to integrate energy storage systems into smart grid infrastructure.
The rapid growth in the energy storage market is similarly driving demand for project financing. The general principles of project finance that apply to the financing of solar and wind projects also apply to energy storage projects.
Since the majority of solar projects currently under construction include a storage system, lenders in the project finance markets are willing to finance the construction and cashflows of an energy storage project. However, there are certain additional considerations in structuring a project finance transaction for an energy storage project.
However, with the passage of the Inflation Reduction Act of 2022, tax credits are now available for standalone energy storage systems, and thus lenders may be willing to provide bridge capital that is underwritten based on the receipt of proceeds from an anticipated tax equity investment, similar to renewable energy projects.
An estimated 387 gigawatts (GW) (or 1,143 gigawatt hours (GWh)) of new energy storage capacity is expected to be added globally from 2022 to 2030, which would result in the size of global energy storage capacity increasing by 15 times compared to the end of 2021.
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