Monday, June 5, 2017

Turkey: PLUTO will Help Minimize Upfront Risks of Geothermal Exploration for 10 to 20 MW Geothermal Power Plant

Financing for geothermal exploration of Turkey’s Dikili area (News Release)

To tap Turkey’s significant geothermal energy potential, the EBRD has mobilised a €5 million loan from the Clean Technology Fund (CTF) for the early stage development of the Prosin-Dikili geothermal power plant near the coastal town of Dikili in the Izmir province of Turkey.

The financing marks the first transaction under a recently launched EBRD/CTF initiative to support exploratory drilling investments.

Geothermal energy projects face high risks particularly in their initial stages, including high investment costs and limited access to project finance once drilling has confirmed the resource.

The joint EBRD and CTF US$ 125 million initiative, named PLUTO after the ruler of the underworld in classic mythology, aims to provide finance and advice to private developers to help minimise these risks.

Under the programme, the private developer Prosin Enerji, a subsidiary of Guney Yıldızı Petroleum, has received financing to expand its exploration of the hitherto mostly unexplored Bergama-Dikili Graben and prepare the site for drilling.

The company has successfully concluded surface, geological and geophysical surveys. If the drilling is also successful, the EBRD is expected to support the development of an initial 10 to 20 MW geothermal power plant.