EBRD Loans To Support Green Transition In Azerbaijan


(MENAFN- AzerNews)
EBRD Loans To Support Green Transition In Azerbaijan Image
Fatime Letifova Read more

On May 1, the Board of Directors of the European bank for Reconstruction and Development (EBRD) will consider the allocation of a loan of up to 30 million US dollars to AzerEnergy JSC, Azernews reports, citing EBRD.

The loan will finance the purchase of autotransformer equipment for strengthening 4 substations operating in Azerbaijan. The project will help establish the energy system flexibility required to integrate Azerbaijan's renewable energy capabilities.

The successful implementation of the project will serve as an example of grid-strengthening projects, which are important for the integration of renewable energy projects in the country.

It is worth noting that the European Bank for Reconstruction and Development (EBRD) was established to help build a new, post-Cold War era in Central and Eastern Europe. It has since played a historic role and gained unique expertise in fostering change in the region - and beyond - investing more than €180 billion in over 6,800 projects.

As well as being a country where the EBRD works, Azerbaijan is also an EBRD donor, with a total contribution of €3.6 million, of which 50% is for the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund and the other 50% are for the Azerbaijan – EBRD Cooperation Account.

Azerbaijan has 200 GW of renewable energy potential and in the near future, and the country plans to realize some of this potential. Thus, Azerbaijan intends to increase the share of renewable energy in electricity generation to 30 percent by 2030. Besides, in December 2022, Azerbaijan, Georgia, Hungary and Romania signed an agreement on the construction of an electric cable from the Black Sea coast of Georgia to the Black Sea coast of Romania. So, by 2030, Azerbaijan also aims to export over 4GW green energy to European markets.

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