Mid-size Sustainable Energy Financing Facility
The Mid-size Sustainable Energy Financing Facility (MidSEFF) was launched in January 2011 in order to reduce Turkey’s dependence on fossil fuels by supporting investments in Renewable Energy (RE) and Energy Effiency (EE) projects to increase energy savings and reduce carbon emissions.
The European Bank for Reconstruction and Development (EBRD) with co-financing support of the European Investment Bank (EIB) provides a refinancing facility of EUR 1 billion loans to currently seven Turkish banks for on-lending to private sector borrowers to undertake mid-size RE Sub-projects (5-50 MW, up to 40 MW for Hydropower plants-HPP), EE improvements in the industrial sector, and private sector investments in municipal and/or industrial waste-to-energy projects.
The objective of the Facility is to ensure that Participating Banks (PBs) become familiar with appraising and financing bankable mid-size sustainable energy investment projects; that technical expertise is developed to identify and prepare technically and environmentally feasible RE projects and that environmental standards, applied in Turkey for sustainable energy projects, converge with those of the European Union. As a result the Facility is expected to instigate a self-sustaining market for investment in medium-sized sustainable energy projects in Turkey.
As part of a consortium (led by MWH), the FS-UNEP Centre is responsible for:
1) General Facility Management: to promote the new and highly attractive loan product currently known as MidSEFF.
2) Capacity Building:
- Support local Partner Banks to identify eligible project opportunities;
- Financially assess viable sub-projects via on-the-job training;
- Streamline and integrate PB operations through training, checklists, electronic tool development, and produce definition and social consultation for each sub-project.
3) Project Preparation: to provide potential sub-borrowers and PBs with assistance in developing suitable projects, including municipal waste-to-energy and carry out the step-by-step process of project assessment from Gap Analysis Report (GAR) through to Rational Energy Utilisation Plan (REUP) including carbon and environmental and social risk evaluation.
Consortium Partners: MWH, Frankfurt School of Finance & Managment, D'Appolonia; GFA Envest
Carbon Finance Team: Climate Focus, GAIA carbon finance, Triodos Facet