Participation bank Kuveyt Turk has signed a cooperation protocol with Turkcell subsidiary Enerjicell. The cooperation reflects both parties’ efforts in promoting sustainable energy. Kuveyt Turk, which issued the landmark world’s first sustainable Tier 2 Sukuk in September 2021, sees the potential of another sustainable Sukuk issuance, with Abdurrahman Delipoyraz, the deputy general manager for SMEs at Kuveyt Turk, stating that the funds raised through the payments under the partnership can also go toward a sustainable Sukuk edition.
Turkcell is the leading mobile phone operator in Turkey with total revenue of TRY35.92 million (US$2.43 million) in 2021. Its subsidiary Enerjicell is an energy solutions provider with a focus on green and efficient energy. The partnership establishes solar power plant projects between the bank and the Turkcell subsidiary and will see Enerjicell refer companies wishing to install solar power plants (SPPs) to Kuveyt Turk. The participation bank will provide financial support to companies that meet the necessary requirements to set up SPPs to increase energy diversity, contribute to sustainable energy supply and promote self-consumption. The collaboration will make solar energy projects with a low return on investment more accessible, providing end-to-end project setup and financing to customers.
Abdurrahman said: “To meet the energy needs of the future generations and reducing the environmental impact, renewable energy we consider it very important to use energy resources. As Kuveyt Turk, we continue to support companies that want to benefit from solar energy, which is outstanding among renewable energy sources, with favorable financing conditions. Accordingly, we have raised TRY400 million (US$27.07 million) for 90 megawatts (MW) of power generation capacity in 2021 and approximately TRY700 million (US$47.37 million) for 75 MW (as of the end of March this year) under the umbrella SPP funding. By the end of 2022, we aim to make a fund payment of around TRY2.5 billion (US$168.92 million) for a total power generation capacity of 250 MW.”
The partnership is also propelled by the increased incentives for renewable energy and recent regulatory changes in Turkey. Enerjicell has made it its mission to not only consume renewable energy but also produce it. “We believe that the easiest way to get rid of rising electricity costs and reduce our dependence on foreign energy as a country is to switch to renewable energy at appropriate consumption points. Among the available resources, the sun is the cheapest method of generating electricity,” Erkin Kilinc, the general manager of Enerjicell, remarked.