Ankara, Turkey – April 29, 2010 – GAMA Energy A.S., a joint venture between GAMA Holding A.S. and GE (NYSE:GE) unit GE Energy Financial Services, today announced their first wind energy projects in Turkey, the 22.5-megawatt Sares and 10-megawatt Karadag wind farms in the country’s western region. The projects, costing a total €54 million, feature GE’s 2.5-megawatt wind turbines.
GAMA Energy, based in Ankara, is developing and investing in the projects while TSKB, the Industrial Development Bank of Turkey, is arranging and leading €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 the first quarter of 2011.
According to GAMA Energy’s estimates, the wind farms are expected to generate enough electricity to power approximately 59,000 average Turkish homes and avoid approximately 80,000 tons a year in greenhouse gas emissions.
GAMA Energy Managing Director and Board Member M. Arif Ozozan said: “Such wind projects as the ones we are launching today not only support a cleaner environment but create employment opportunities, support our company’s growth objectives and help Turkey achieve its renewable energy goals.”
“These projects represent the growth of our productive partnership with GE as well as our commitment to investing in Turkey’s growing energy sector,” said Hakan Ozman of GAMA Holding A.S.
“This investment demonstrates Gama Energy’s ability to develop and execute high-quality energy projects,” said Andrew Marsden, managing director of Europe at GE Energy Financial Services. “In addition, this investment is in line with GE’s ecomagination program to help customers meet their environmental challenges, and it contributes to our global growth.”
Turkey’s Ministry of Energy and Natural Resources aims to generate 20 percent of its electricity production from renewable resources by 2020. In wind energy, the country has developed just 600 megawatts 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,” Marsden said.