Saudi’s ICD gives $16m to Turkey’s solar plant project

Dubai: Saudi Arabia’s The Islamic Corporation for the Development of the Private Sector (ICD) signs a $16.2 million (Dh59 million) financing agreement with Turkish manufacturer of commercial vehicle part Sampa to facilitate the development and construction of a solar power plant in Turkey. This proposed solar facility will generate 21 megawatts (MW) of energy, helping Sampa lower its energy expenses and decrease emissions. The ICD-funded plant is classified as a captive plant, meaning it will exclusively serve Sampa’s energy-intensive automotive manufacturing operations.

Sampa is a major auto parts manufacturer with over 4,500 employees, producing and selling 45,000 tons of products annually and achieving an annual turnover of $408 million (Dh1.4 billion).

Based in Jeddah, the ICD is the private sector arm of the Islamic Development Bank Group. Sampa and the ICD have indicated that the project will contribute to Turkey’s broader renewable energy objectives. Turkey aims for net-zero emissions by 2053, supported by its Renewable Energy Support Mechanism, which encourages private sector investments in renewable energy. To reach its goal of quadrupling renewable energy generation to a capacity of 120,000 MW by 2035, Turkey plans to bring an additional 7,500 MW to 8,000 MW online each year.

This effort involves estimated investments of $80 billion (Dh293 billion) for boosting electricity output and an additional $30 billion (Dh110 billion) for enhancing transmission and infrastructure. Currently, Turkey is heavily reliant on energy imports, including coal, sourcing 40 per cent of its coal for power generation from abroad. The country’s renewable energy strategy, which also includes nuclear power initiatives, aims to reduce import costs and lower emissions.