Project detail - Enerjisa Enerji Uretim A.S.

Who is our prospective customer?

Enerjisa Enerji Üretim A.Ş. (the “Company” and the “Borrower”) is one of the largest independent power producers in Türkiye, with a total installed capacity of 4.5 GW and a diversified generation portfolio. The Company is a joint venture between Sabancı Holding and E.ON, each holding 50%.

What is our funding objective?

This proposed investment concerns the development and construction of the second phase of Türkiye’s national large-scale wind tender program (YEKA-2), comprising Gaia, Falp, and Arturna wind power plants, which together will deliver up to 250 MW of installed capacity (the “Project”). FMO will provide a senior loan of up to USD 100 mln with an 8-year tenor, covering a substantial portion of the funding gap for the Project.

Why do we want to fund this investment?

The Project will contribute to climate-change mitigation by generating approximately 630 GWh of renewable electricity annually from 250 MW of wind capacity, thereby avoiding around 220,000 tonnes of CO2 emissions from the Turkish power system each year. The financing is expected to be labelled 100% Green.

What is the Environmental and Social categorization rationale?

The environmental and social (E&S) category of this transaction is B+, and the applicable IFC Performance Standards (PSs) are PS 1-6 and 8. This will be further confirmed during FMO’s E&S due diligence. Main E&S risks are related to biodiversity, due to potential impacts to avifauna during operations and the Project Area of Influence overlap of two of the three projects (Gaia, Falp) with Key Biodiversity Areas (KBAs) for which Critical Habitat and High Conservation Value Area (HCVA) trigger has been confirmed. FMO’s initial assessment is that the projects are not expected to result in the destruction of HCVAs, and therefore FMO’s relevant Exclusion List item (No. 4) is not triggered. This is subject to further confirmation during FMO’s due diligence. Key E&S risks further relate to: (i) land acquisition causing economic (but not physical) displacement from both the project site and associated transmission lines; (ii) occupational, labour and community health and safety risks during the project construction; (iii) resource use and pollution risks during construction and operations; (iv) Cultural Heritage risks due to the presence of intangible cultural heritage sites, particularly in Arturna; and (v) human rights risks in the wind supply chain. PS7 is not triggered as the project will not have any impacts on groups recognized or self-identifying as Indigenous Peoples.