Turkish, Chinese firms ink $600M storage facility, wind farm deal
TÜRKİYE’S Progresiva Energy Investments yesterday signed an agreement with Chinese electric power plant equipment manufacturer Harbin Electric International (HEI) for the building and financing of an electricity storage facility and wind farm.
The project that will encompass what will be Europe’s largest energy storage facility entails a total investment of $600 million, Vice President Cevdet Yılmaz told a ceremony in Ankara.
Yılmaz said $375 million is already in the pipeline for the initial phase. Some $300 million will be secured from China through Habin, with the remainder being financed by Progresiva through its equity.
Sami Arslanhan, chair of the board of Kontrolmatik, Progresiva’s main shareholder, said the investment would be implemented in two phases.
The investment size for the 1,000 MWh storage facility will range from $350 million to $375 million, while the investment size for the 250 megawatts (MW) wind farm will be approximately $250 million.
The financial advisory for the agreement was conducted by Istanbul-based OMG Capital Advisors.
According to the statement made by the company to the Public Disclosure Platform (KAP), HEI will be the main contractor for engineering, construction and procurement in the project.
Kontrolmatik will be responsible for electrical works, while its subsidiary Pomega will act as a subcontractor for the purchase of batteries.
The storage facility, to be located in Tekirdağ in the north Marmara region, known for intense industrial and energy consumption, is planned to be commissioned in 2025, followed by the wind farm in 2027.
RENEWABLE PUSH
“This project will enhance our national capabilities, propel Türkiye into a new phase in battery technologies, and pave the way for the largest energy storage facility in Europe,” Yılmaz said.
Regarding Türkiye-China relations, Yılmaz acknowledged the trade volume surpassing $50 billion but called for efforts to address the existing trade imbalance. He stressed the importance of enhancing cooperation, particularly in tourism and direct investments, expressing the desire to see more Chinese tourists and investors in Türkiye.
He underscored the need for increased Chinese investment, considering Türkiye’s strategic location, large market potential, young and dynamic population, and entrepreneurial culture.
“In a perspective aimed at compensating for imbalances in trade, it is necessary to support tourism and direct investments. We want to see more Chinese tourists in Türkiye, and we want to see more direct investments from China into Türkiye,” Yılmaz said.
“I consider this project as a promising starting point. It’s a positive development, but it’s not enough; we are expecting more Chinese direct investors to come to Türkiye.”