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Sustainability 12 Nov 2019

Garanti BBVA sees Turkey as a leader in wind energy projects

High level government representatives from the energy, industry, and finance fields participated alongside business leaders at the Eighth Turkish Wind Energy Congress (TWEC 2019). Experts at the event agreed, “We have created a success story in energy, with wind energy leading the sector.” The event was held in Ankara and organized by theTurkish Wind Energy Association (TWEA).

Garanti BBVA Director of Corporate Loans and Project Finance Restructuring, Emre Hatem, was on hand at the event and praised Turkey’s energy sector. Hatem specifically singled out Turkey’s wind energy sector, describing it as a reliable and profitable area of investment.

Hatem attributed the renewable energy projects supported by the government’s YEKDEM scheme for the drop in energy import costs and lower electricity bills. He discussed the factors that have led to the current finance restructuring challenges faced by the energy sector: low prices resulting from the supply-side imbalance, which in turn stems from the sharp and unexpected drops in oil prices between 2015 and 2018.

The Garanti BBVA executive explained how the banking industry had predicted excess supply, “We erred on the side of caution because there was a surplus of projects. So, we were selective about the projects we financed.” Despite the current challenges, the Garanti BBVA Director of Corporate Loans and Project Finance Restructuring maintains that Turkey’s energy sector – particularly the wind segment – has a success story to tell. “From a financing standpoint, the wind energy sector is the strongest, which demonstrates the sector is taking steps to justify our positive outlook,” he said.

According to Hatem, new large-scale, gas or coal-fired energy plant investments will not be likely in the future. He expressed confidence in renewable energy, explaining that he expects new renewable energy investments with a total capacity of 15,000 MW to be commissioned within the next six years. “Rates may be debatable, but we believe that the economy will grow. Thanks to these investments, we may see the supply-side imbalance disappear in 2025, which means we may expect a certain increase in energy prices,” he concluded.

Emre -Hatem - GarantiBBVA-2019

Garanti BBVA Director of Corporate Loans and Project Finance Restructuring, Emre Hatem.

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