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China and Türkiye will build Europe's largest energy storage facility

Turkish Progresiva Energy Investments and Chinese Harbin Electric International Engineering Co., Ltd. (HEI) have signed an agreement for a $600 million investment, which includes Europe's largest energy storage facility.

China and Türkiye will build Europe's largest energy storage facility

The 1 GWh storage facility of the project, which will be established in Tekirdağ and is expected to reach the provisional acceptance stage in 2027, is planned to be commissioned in 2025.

Türkiye's Vice President Cevdet Yılmaz announced that the project will encompass one of Europe's largest energy storage facilities.

The total value of the agreement amounts to $600 million, with an initial investment of $375 million for the first phase. HEI will serve as the main contractor for the project, with financial advisory services provided by Istanbul-based OMG Capital Advisors.

The decision to increase tariffs to 30% for imported lithium iron phosphate (LFP) batteries, aimed at boosting Turkey's domestic energy storage sector, is viewed as a positive step toward increasing the share of renewable energy in Turkey's electricity production. The acceleration of Chinese companies' capacity to establish production overseas is anticipated.

Additionally, EVE Energy announced plans to establish a joint venture with Aksa to implement energy storage system projects in Turkey.

With the growing demand for energy construction and storage facilities under Turkey's energy transformation decision, the impact of Chinese enterprises supporting overseas development is expected to increase in 2024.

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