EBRD to support two solar projects in Azerbaijan

The European Bank for Reconstruction and Development (EBRD) has announced a long-term senior loan of up to $80 million to support the development, construction, and operation of a solar photovoltaic power plant in Azerbaijan's Neftchala district.

The project will be developed by a newly established special-purpose vehicle in Azerbaijan, which will act as the borrower for the project. Abu Dhabi Future Energy Company PJSC (Masdar) will act as the sponsor for the project, News.Az reports.

According to the EBRD, the project will add 315 MW of solar photovoltaic power generation capacity to the Azerbaijani power system. This would help substitute natural gas-based power plants and help the Government of Azerbaijan in meeting the renewable energy targets set in line with the country's commitments under the Paris Agreement. The project will also result in strong environmental benefits with estimated annual CO2 emissions savings of up to 314,000 tonnes. This will assist the country in its low-carbon transition, reducing its current high reliance on thermal power generation.

The transition impact of the project is expected to come mainly from its alignment with the EBRD's Green Economy Transition approach (GET) as it will allow producing electricity using solar power, which will assist the country in its low-carbon transition, reducing its current high reliance on thermal power generation.

In a related initiative, the EBRD is also planning to approve a loan of up to $100 million for the development of the Bilasuvar Solar SPV, which will have a capacity of 445 MW.

Like the Banka Solar project, this venture is being implemented by the Abu Dhabi Future Energy Company, a subsidiary of Masdar (UAE), and will further enhance Azerbaijan’s renewable energy generation capacity.

This new solar facility is expected to save up to 442,000 tons of CO2 emissions each year, marking a critical step in the country's efforts to reduce reliance on thermal power and foster a low-carbon economy. Both projects are anticipated to receive approval from the EBRD Board of Directors on October 22.

News.Az