GE (NYSE: GE) is entering Turkey’s wind industry with it first two wind farm projects.
GE Energy Financial Services has formed a joint venture with GAMA Holding A.S. to develop the 22.5-megawatt (MW) Sares and 10-MW Karadag wind farms in the
country’s western region. the combined cost of the projects is EUR 54 million.
The joint venture is called GAMA Energy A.S.
GAMA Energy, based in Ankara, is developing and investing in the projects while TSKB, the Industrial Development Bank of Turkey, is arranging and leading EUR 44 million in debt financing. Additional details of the financial transactions were not disclosed.
GE Energy is supplying 13 turbines and will operate and maintain them under a services agreement.
The projects’ power will be sold to the merchant market or will benefit from the Turkish regulated feed-in tariff. Construction of the Sares wind farm begins next week and is expected to be completed by the end of this year. Construction of the Karadag project is planned to begin later this year, with completion during 1Q11.
Turkey’s Ministry of Energy and Natural Resources aims to generate 20% of its electricity production from renewable resources by 2020. In wind energy, the country has developed just 600MW of an estimated potential 88 gigawatts.
“GE Energy Financial Services sees Turkey as an exciting renewable energy market with great prospects if government regulations and tariffs are set appropriately,” said Andrew Marsden, managing director of Europe at GE Energy Financial Services.
GAMA was established in Turkey in 1959 and has become an international
general contractor with operations in 17 countries extending from
Ireland in the west to Russia’s Sakhalin Island in the east. GAMA Group
Companies presently have contracts in 10 countries valued about USD $4.4
Billion and a work force of 20,000 employees. Besides EPC supplier of
power plants and general contractor of industrial facilities, GAMA’s
other core business is energy investments which is handled by its
subsidiary GAMA Energy A.?.
GAMA Energy is developing renewable hydroelectric and wind energy projects as well as larger thermal power plants and one water project in Jordan. The company also has made investments in water supply projects with a capacity of 140
MCM/year and serves as the largest stakeholder of Theolia (TEO.PA)–a
wind generation company based in France.
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