EBRD Considers Financing Loan For Construction Of Solar Power Plant In Azerbaijan's Neftchala

2024-09-20 07:17:21

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 20. The European Bank for Reconstruction and Development (EBRD) is considering financing a project to build a 315 MW solar power plant in the Neftchala region of Azerbaijan, Trend reports.

According to the EBRD, approval of the loan is expected on October 22.

It is noted that the project, the cost of which is 280 million dollars, will receive a loan of up to 80 million dollars from the EBRD.

In addition to the EBRD, the project is expected to receive support from a number of other international financial institutions.

The project will be implemented by Abu Dhabi Future Energy Company PJSC (a subsidiary of Masdar).

The project aims to increase the share of renewable energy sources in Azerbaijan's energy system, reducing dependence on natural gas and reducing CO2 emissions by 314 thousand tons annually. This will also help the country meet its commitments under the Paris Agreement.

The project will use innovative financing mechanisms that are not available locally, as well as strict environmental standards. Construction will be carried out in a manner that minimizes environmental impact and protects biodiversity.

The project is expected to have an impact on the energy transition mainly due to its alignment with the EBRD's Green Economy Transition (GET) approach as it will enable electricity production using solar energy.

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