Mid-Size Sustainable Energy Financing Facility

Published by: 
European Bank for Reconstruction and Development
Publication Date: 
December, 2015

Document Type:

The purpose of the MidSize Sustainable Energy Financing Facility (MidSEFF) was to help finance mid-size sustainable energy projects of €10-40 million in Turkey through on-lending by commercial banks. Four participating banks on-lent nearly €300 million to 27 sustainable energy projects in renewable energy and energy efficiency.

Key findings include:

  • MidSEFF had a significant effect on the Turkish renewables market.
  • More time and other specific products were needed for further market diversification of renewable energy technologies.
  • Participating bank experience in project finance was important to subproject success.
  • There is currently a limited market for Local Currency Lending in sustainable energy.
  • Inclusion of energy efficiency projects in MidSEFF was of limited value.
  • Incentives were not needed for MidSEFF to succeed.
  • Brand is important.
  • An outreach and marketing project component could promote uptake and diversification.

The recommendations include:

  • Given comparable circumstances, avoid allocating funds for direct risk participation.
  • Introduce market/industry norms, benchmarks or standards for energy production and/or carbon reduction.
  • Select energy efficiency projects for mid-size facilities such as MidSEFF with a clear and evident demonstration effect.
  • Limit hydropower and wind projects, and when hydro and wind projects are undertaken, accompany them with enhanced environmental and social standards.
  • Feature solar licensing as a focus of future policy dialogue.
  • Focus carbon market policy dialogue on GHG management and Measuring, Reporting and Verifying.