Sustainable Energy Financing Facility (TURSEFF)
Policy measure

In 2010, the Sustainable Energy Financing Facility (TURSEFF) was established as a credit line for industrial companies, commercial enterprises and private households that sought to invest in energy efficiency or renewable energy projects. TURSEFF was developed and supported with an amount of EUR 200 million by the European Bank for Reconstruction and Development (EBRD) with credits being disbursed through partner banks. (TURSEFF, 2011a; Finchannel, 2011)

Implementation

TURSEFF provides loans of up to USD 5 million for eligible projects that include a substantial energy efficiency component. Other project components may be financed by either the customer himself or by a third party such as a participating local bank. (TUSEFF, 2011a)


TURSEFF was developed for investments such as commercial and industrial energy efficiency: “Basically all industries are eligible, as long as they are not related to the production, marketing, distribution (or similar activity) of tobacco products, hard liquor, alcohol (other than breweries, wineries and other companies manufacturing low/medium alcoholic beverages), gambling, arms and activities listed on the EBRD Environmental Exclusion and Referral List.” (TURSEFF, 2011c)


Examples of investments under this category are (TURSEFF, 2011d):

  • “On site co-generation of heat and electricity. The cogeneration projects should comply with the CHP Directive.

  • Rehabilitation of boilers (enhanced controls, economizers, improved insulation, regenerative burners, automatic blow-down, etc.).

  • Switch from electricity heating to fuel based direct heating

  • Process improvements including enhanced controls.

  • Rehabilitation of steam distribution systems: installation of steam traps, increased condensate recovery, etc.

  • Installation of heat recovery from processes (e.g., installation of economizers for pre-heating purposes, heat recovery for space heating, heat recovery for drying, etc.).

  • Installation of absorption chillers.

  • Installation of Variable Speed Drives on selected electric motors.

  • Rehabilitation of compressed air systems (e.g., decentralisation and/or resizing of air compressors, replacing of old air compressors with new efficient ones).

  • Rehabilitation of power distribution systems (e.g., replacement of old or oversized transformers, installation of capacitors to reduce reactive power consumption, etc.).

  • Implementation of Energy Management Systems or Building Management Systems.

  • Implementation of energy saving measures in the built environment (e.g., insulation of walls, roofs and floors; installation of rolling doors; installation of new windows; installation of new heating and ventilation systems; installation of high energy efficiency lighting; etc.).

  • The companies applying for a TURSEFF credit should be financially viable.

  • The investment must lead to a reduction in energy efficiency and the money provided by TURSEFF can only be used for those projects where energy savings are measurable.”

Furthermore, to support the supply side of energy efficiency technologies, investment loans of up to a maximum of USD 1 million are available for energy efficiency suppliers (manufacturers, suppliers and installers) (TURSEFF, 2011b).


“The maximum individual loan categories are defined as follows (TURSEFF, 2011b):

  • “USD 5 million for Energy Efficiency, Renewable Energy and Commercial Buildings projects

  • USD 300,000 for Small Scale projects

  • USD 1 million for investment loans to Energy Efficiency Suppliers”

Challenges
No identified challenges.
Outcomes

According to TURSEFF (2011b), projects financed under TURSEFF should meet at least one of the following performance criteria: “1) an Energy Saving Ratio (ESR) equal or greater than 20%, as measured on an annual basis, all things being equal; or 2) a reduction of greenhouse gases emissions measured in tones equivalent of CO2 equal or greater than 20%, as measured on an annual basis, all things being equal. Moreover, the minimum Internal Rate of Return (IRR), calculated only from the financial value of the potential energy savings must exceed 10%.”

References

TURSEFF (Turkey Sustainable Energy Financing Facility), 2011a. TURSEFF Credit. Available at: www.turseff.org/en/truseff-credits.html.


TURSEFF (Turkey Sustainable Energy Financing Facility), 2011b. Manufacturers and Installers of Energy Efficiency and Renewable Energy Equipment. Available at: www.turseff.org/en/truseff-credits/15-manufacturers-and-installers-of-energy-efficiency-and-renewable-energy-equipment.html.


TURSEFF (Turkey Sustainable Energy Financing Facility), 2011c. Small-Scale Commercial Energy Efficiency Investments. Available at: www.turseff.org/en/truseff-credits/11-small-scale-commercial-energy-efficiency-investments.html.


TURSEFF (Turkey Sustainable Energy Financing Facility), 2011d. Commercial & Industrial Energy Efficiency Investments. Available at: www.turseff.org/en/truseff-credits/13-commercial-a-industrial-energy-efficiency-investments.html.


Finchannel, 2011. EBRD and Turkey sign sustainable energy action plan. Available at: www.finchannel.com/news_flash/Banks/83230_EBRD_and_Turkey_sign_sustainable_energy_action_plan.