(MENAFN- AzerNews)
Nigar Hasanova Read more
In the Caucasus, the EBRD is a significant institutional
investor. More than €3.6 billion has been invested by the bank in
188 projects in Azerbaijan so far. It should be mentioned that the
Country Strategy for 2019–2024 governs the cooperation between the
EBRD and Azerbaijan. Its primary objective is to assist the nation
in diversifying its economy and advancing its green climate
objectives. The Bank places a high priority on combating climate
change, but EIB Global also works in other priority areas, such as
innovation, digital and human capital, small and medium-sized
businesses, sustainable cities and regions, sustainable energy and
natural resources, and small and medium-sized businesses. In this
context, the Bank was consulted regarding actions to be taken to
carry out priority projects in the green economy, energy,
particularly renewable and alternative energy, infrastructure,
private sector development, and other areas.
The first project for building a massive solar power plant in
Garadagh was co-financed by EBRD to assist Azerbaijan's
decarbonization initiative. With assistance from the OPEC
Foundation, the European Bank for Reconstruction and Development
(EBRD) is funding the building of Khizi-Absheron, a 240-megawatt
wind power project, in eastern Azerbaijan. This is the biggest
utility-scale wind energy plant in the Caucasus and the nation's
first wind energy project overall. It is anticipated that the wind
power plant will generate up to 893 gigawatt-hours of net
electricity annually once it is operational. Emissions of carbon
dioxide may rise as a result by up to 400,000 tons annually.
The OPEC Foundation is proud to be a major partner in the
Khizi-Absheron wind power project, which is a significant
advancement in Azerbaijan's energy landscape and involves foreign
partners as well as a public-private partnership project on
renewable energy sources for the private sector, according to
Director General Abdulhamid Alkhalifa.
"Thanks to our support, we are trying to promote ecologically
clean energy production and Azerbaijan's diversified energy future.
The agreement is also proof of what international cooperation can
achieve for the purpose of development," he stressed.
The EBRD has already assisted Azerbaijan with a preliminary
evaluation of the nation's low-carbon hydrogen potential to
diversify the country's energy sources. In August 2023, a
preliminary report written by a foreign consultant was released.
The paper states that Azerbaijan, like the European Union, is in
high demand for renewable hydrogen and is more than capable of
producing it to promote decarbonization locally.
“The nation can provide the areas with renewable fuel at a cost
that is competitive,” EBRD stated.
The ACWA Power Azerbaijan Renewable Energy project firm, owned
by ACWA Power, an international developer, investor, partner, and
operator of a portfolio of power and freshwater production
facilities, received a loan of $197.1 million (€186.9 million) from
the bank. The OPEC International Development Fund (OPEC Fund) will
contribute to the project's financing.
"We are proud to finance this remarkable project in Azerbaijan.
In the past, by signing a Memorandum of Understanding with
Azerbaijan and our long-time partner ACWA Power, we committed
ourselves to the implementation of projects in the field of
renewable energy sources, green hydrogen, and desalination of salt
water in our regions. I am glad that thanks to this memorandum, we
have realized approximately 1.5 gigawatts of the promised volume of
increasing renewable energy in the regions. We are grateful to the
ACWA Power company and the OPEC fund for their common support in
the fight against climate change," said Nandita Parshad, managing
director of the Sustainable Infrastructure Group of EBRD.
In response, ACWA Power CEO Marco Arcelli stated that his
organization is keen to assist Azerbaijan in realizing its
objective of obtaining thirty percent of its energy demands from
renewable sources.
"We are deeply grateful to our financial partners, the EBRD and
the OPEC Foundation, for their continued support in making this
goal a reality. Our commitment to sustainable development goes
beyond borders, and we count on the continued support of all
stakeholders as we mark another milestone in this important
project," he also added.
Through investment, technical collaboration, and policy dialogue
based on the memorandum of understanding agreed upon between the
EBRD and Azerbaijan in December 2022, the Bank plays a significant
role in supporting the nation's ambitious green agenda and
implementing Azerbaijan's goal of 40% reduction in emissions by
2050.
Regarding future plans, a virtual meeting was conducted between
Minister of Economy Mikayil Jabbarov, the head of the European Bank
for Reconstruction and Development (EBRD), and Jurgen Rigterink,
the first vice president of the bank, to discuss potential future
collaboration and opportunities.
Jurgen Rigterink emphasized that Azerbaijan's globally
significant activities foster partnership and that the scope of
bilateral cooperation encompasses significant concerns. The bank's
first vice president mentioned how crucial it is that Azerbaijan
hosts the 29th Conference of the Parties to the UN Framework
Convention on Climate Change (COP29) and expressed the EBRD's
readiness to assist Azerbaijan in this endeavor. During the
discussion, details of our nation's socio-economic priorities were
shared and emphasis was placed on Azerbaijan's successful
relationships with the EBRD in several areas. It was observed that
there are numerous chances for collaboration to achieve the
predetermined development objectives.
Jurgen Rigterink, the first vice-president of the EBRD, remarked
on the Bank's successful collaboration with our nation, conveyed
the organization's intention to keep assisting Azerbaijan's
economic growth, and stated that Azerbaijan's economic potential
provides a solid foundation for future relations.
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