**London**: UK firms are integral to Türkiye’s Karapinar solar farm, generating energy for two million homes. Backed by a £217 million UKEF guarantee, this project exemplifies successful British international collaboration in renewable energy, with further initiatives planned for the future.
British suppliers have played a crucial role in supporting Türkiye’s largest solar energy project, the 1.35GW Karapinar solar farm, which is poised to transform the country’s renewable energy landscape. The project, which became fully operational in 2023, was equipped with essential components, including inverter stations, power plant controllers, specialised cabling, and custom transformers, all provided by UK firms. This collaboration was facilitated through a deal managed by UK Export Finance (UKEF), the UK government’s export credit agency.
The Karapinar solar farm, which generates clean energy for approximately two million homes in Turkey, is seen as a demonstration of how British businesses can effectively engage in high-value segments of the global renewable energy supply chain, even as solar represents a relatively modest aspect of the UK’s domestic energy portfolio.
UKEF’s innovative financing capabilities have been pivotal in making such international collaborations possible. The agency offers competitive financing terms to both public and private entities abroad, which not only supports UK exporters but also contributes to sustainable development in host countries. Vomic Shah, UKEF’s Global Head of Business Origination, stated, “Our objective is to use our competitive finance offer to bring in the UK supply chain and its world-class expertise to deliver sustainable infrastructure projects globally.”
In the case of the Karapinar project, UKEF was instrumental in providing a £217 million guarantee for a Buyer Credit Facility, which enabled GE Energy Financial Services to deploy its FLEXINVERTER solar technology outside the US for the first time. UKEF’s involvement aligns with Turkey’s commitment to achieving net-zero emissions by 2053 and marks a significant opportunity for British companies to expand their market presence through renewable energy projects.
Following the success of the Karapinar project, plans have commenced for a second solar initiative in 2024, with financing set at €249 million. Gareth Thomas, UK Minister for Exports, remarked, “Our mission is to grow the economy, including through boosting exports so British businesses can sell their world-class goods and services around the world.”
Beyond Türkiye, UKEF has been notably active in Angola, where it is supporting significant infrastructure development. In late 2023, UKEF entered into a €415 million loan agreement aimed at enhancing flooding infrastructure. This project, undertaken with British exporter Innovo Group, is expected to improve water supply, storm drainage, sanitation, and public lighting and is anticipated to create approximately 11,000 local jobs while directly spending more than £140 million on UK exports.
UKEF’s dual objective of aiding developing economies while promoting UK exports is particularly relevant in the context of increasing climate challenges and the need for robust infrastructure. Emma Thomas, Co-Head of Business Origination at UKEF, emphasised that “mobilising capital in emerging markets is a core objective for UKEF,” highlighting its commitment to facilitating large-scale infrastructure projects that may otherwise lack funding.
UKEF maintains in-country representatives across 23 British diplomatic missions globally, fostering relationships with local governments to identify priority projects in need of financing. This collaborative approach between UKEF and British exporters is designed to create partnerships that yield mutual benefits and encourage infrastructure development aligned with local needs.
As international development continues to pivot towards sustainable and resilient practices, UKEF’s contribution through export finance is becoming increasingly essential, especially in regions grappling with the consequences of climate change and rapid urbanisation. The agency not only supports UK businesses in expanding their export potential but also underpins the construction of sustainable infrastructure that could significantly improve living conditions in developing markets.
Source: Noah Wire Services
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