Türkiye’s Ihlas Holding seals $244M renewable energy deal with global giants

Ihlas Holding has signed a strategic cooperation agreement with China Energy International (CEOIC), a subsidiary of Chinese energy giant Energy China (CEEC), and Sungen Solar Energy to develop a 250 megawatt-peak (MWp) licensed solar energy production and storage system project in Türkiye.

Under the $244 million agreement, a licensed solar power plant with a total capacity of 200 megawatts (MW) and a 65 MW energy storage system will be developed in Türkiye. The project will later integrate energy storage systems with a capacity of 200 megawatt-hour/250 megawatt mechanical (MWm) to enhance the efficiency and utilization of renewable energy resources.

As part of the memorandum of understanding, a joint company will be established with an ownership structure of 80% for CEOIC, 10% for Sungen Solar Energy, and 10% for Ihlas Holding. This company will oversee the development, construction, and operation of the project.

The signing ceremony took place at the Marriott Hotel in Ankara on Friday, attended by Türkiye’s Deputy Minister of Energy and Natural Resources Nevzat Satiroglu. The agreement was signed by Ihlas Holding’s representative Kani Bozbay, CEEC Chairman Lyu Zexiang, CEOIC’s General Manager Cheng Dan, and Sungen Solar Energy’s Chairman of the Board Inan Yurek and CEO Rifat Oguz Celebi.

‘Ihlas Holding is committed to Türkiye’s future with clean energy’

Speaking at the ceremony, Satiroglu expressed his hope for the swift implementation of the project and its benefits for both countries.

He also highlighted bureaucratic challenges affecting the approval processes of wind and solar energy projects, noting that new regulatory adjustments are expected to come into effect by the end of March.

Ihlas Holding’s representative Kani Bozbay emphasized the significance of the 250-MW project in Türkiye’s sustainable energy transition.

“This partnership, which we have built together with China Energy and Sungen Solar Energy, is a visionary step that we aim to expand not only in Türkiye but also in regions such as Syria, Iraq, and Libya,” he stated.

“As Ihlas Holding, we are committed to becoming a long-term player in the energy sector. We will continue to contribute to Türkiye’s future with clean, sustainable, and reliable energy investments,” Bozbay added.

‘A model for China-Türkiye cooperation’

China Energy Chairman Zexiang noted that CEEC has undertaken more than 70 projects in Türkiye since 2001. He emphasized that the new project represents their first integrated investment, construction, and operational model in the country.

“This project marks just the beginning of our trilateral cooperation. We aim to deepen our collaboration with Sungen and Ihlas in various fields and explore new opportunities. I hope this partnership will serve as a model for China-Türkiye cooperation,” Lyu said.

Sungen Solar Energy CEO Rifat Oguz Celebi underscored Türkiye’s strategic energy goals, stating that the country aims to strengthen energy supply security by diversifying routes and sources, positioning itself as a regional energy trade hub.

Ihlas Holding has been a prominent Turkish conglomerate since 1970, with interests spanning media, construction, manufacturing, health care and energy. The company has played a pivotal role in Türkiye’s economic landscape, leveraging its expertise across various industries to drive sustainable growth and innovation.

In the energy sector, Ihlas Holding is committed to advancing renewable energy solutions and sustainable infrastructure projects, aligning with Türkiye’s clean energy transition goals. On Nov. 4, 2024, Ihlas Holding’s subsidiary Orta Asya Investment Holding signed an agreement for two major energy projects as part of a $7 billion total investment deal, in partnership with Chinese energy giant PowerChina and Kazakhstan’s SemArco Group.

CEOIC is a subsidiary of CEEC, which ranks 239th on the 2024 Fortune Global 500 list. CEOIC serves as the core platform for the parent company’s international expansion, offering comprehensive, integrated, and full-cycle services in the energy, power, and infrastructure sectors. CEEC operates in over 140 countries and regions with 256 subsidiaries worldwide.

Founded in 2013 as a Turkish-German joint venture, Sungen Solar Energy is an EPC (engineering, procurement, and construction) firm specializing in renewable energy. With a total installed capacity of 780 MW across Türkiye, it is one of the leading companies in the sector.