Daily Sabah (Turkey)

Turkish, Chinese firms ink $600M storage facility, wind farm deal

- ISTANBUL / DAILY SABAH

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.”

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