Home / Metal News / Turkey and a Chinese company have signed a contract for the first gigawatt-scale energy storage station project.

Turkey and a Chinese company have signed a contract for the first gigawatt-scale energy storage station project.

iconFeb 23, 2024 19:46

Recently, Turkish Progresiva Energy Investment Company signed an agreement with Chinese power station equipment manufacturer Harbin Electric International Engineering Co., Ltd. (HEI), which involves the construction and financing of electric power storage facilities and wind farms. Turkey's Vice President Fuat Oktay stated at the ceremony held in Ankara that the project will include the largest energy storage facility in Europe, with a total investment of $600 million. Oktay mentioned that the initial phase of the investment has reached $375 million, of which about $300 million will be obtained from China through Harbin's company, and the remaining part will be financed by Progresiva through equity financing. The financial advisor for the agreement is Istanbul-based OMG Capital Advisors. According to a statement submitted by the company to the public disclosure platform, HEI will become the project's main contractor for engineering, procurement, and construction. Kontrolmatik will be responsible for electrical engineering, while its subsidiary Pomega will act as the subcontractor for battery procurement. The energy storage facility is located in Tekirdağ, in the northern part of the Marmara region, which is known for its dense industrial and energy consumption, and is scheduled to be operational by 2025, while the wind farm is expected to be in service by 2027. Ahmet Burak Dağlıoğlu, head of the Turkey Investment Office, also attended the signing ceremony for the investment. He indicated that currently, 55% of Turkey's electricity generation comes from renewable energy, with the goal of increasing this ratio to 65% by 2035. Previously, Turkey announced a 30% tariff on imported lithium iron phosphate (LFP) batteries. The increase in import tariffs applies not only to the batteries but also to battery packs and energy storage systems. This is a highly positive move for the domestic battery storage industry in Turkey and has also accelerated the pace at which Chinese companies build production capacities overseas. On January 15, 2024, EVE Energy released an announcement stating that its subsidiary EVE Power had signed a memorandum of understanding with Aksa. The announcement indicated that EVE Power and Aksa intend to establish a joint venture in Turkey aimed at the production, marketing, and sale of battery modules, outdoor cabinets, and containers, as well as implementing energy storage system projects as an EPC (Engineering, Procurement, and Construction) contractor in Turkey (locally). Although Turkey currently does not have a large number of deployed battery storage systems, it is expected that under the resolution for an energy transition, there will be a long-term continuation in the demand for new energy construction and energy storage facilities. Against this backdrop, the pace of Chinese enterprises supporting overseas development is likely to accelerate further in 2024.

Energy Storage
New Energy

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