(MENAFN- AzerNews)
The European bank for Reconstruction and Development (EBRD) will
provide a long-term loan of up to 80 million dollars for the
design, construction, and operation of the 315 MW Banka Solar solar
photovoltaic plant in Neftchala district in the east of Azerbaijan,
Azernews reports.
According to the bank, the total cost of the project is 280
million dollars and its implementation will be supported by several
other international financial institutions. The approval of the
loan by the EBRD Board of Directors is expected on October 22.
The project will be implemented by Abu Dhabi Future Energy
Company, a subsidiary of Masdar (UAE).
The project will add 315 MW of solar power to Azerbaijan's
energy system, which will replace natural gas-fired power plants
and help the country meet its renewable energy goals under the
Paris Agreement. The project is expected to reduce annual CO2
emissions by 314,000 tons, contribute to Azerbaijan's transition to
a low-carbon economy and reduce dependence on heat generation.
The project is in line with the EBRD's Green Economy Transition
Strategy (GET) as it will contribute to electricity generation
using solar energy, an important step in advancing the country's
green agenda.
The project area partially overlaps with a Key Biodiversity Area
(KBA) for waterfowl. Preliminary studies have identified the
presence of bird-priority biodiversity sites, but the Environmental
and Social Impact Assessment (ESIA) and Critical Habitat Assessment
(CHA) have shown that the solar plant will not adversely affect
these sites and no net loss of biodiversity is expected.
The 80-kilometer 330 kV power line that will connect the station
with the Navahi substation passes near the Shirvan National Park
and an important ornithological area located near the migration
corridor. The Azerbaijani government, which is responsible for
building the line, will have to comply with the World Bank's
Environmental and Social Standards, including a possible adjustment
of the route to avoid impacts on sensitive areas and minimize risks
to birds.
The project covers three areas with a total area of 973
hectares belonging to Yenikand, Banke municipalities and Neftchala
Executive Authority. These lands will be given to the Ministry of
Energy for research. The site is a flat semi-desert area with a
3.5-kilometer asphalt road and parallel 6 kV and 35 kV power lines.
Part of the site was previously used by a shepherd and his two
workers for cattle grazing, but the lease was terminated in 2023
and an alternative site was provided. The land is currently unused
and there are no seasonal land users. The site also contains the
abandoned ruins of Soviet military facilities that, according to
local authorities, are worthless and will be dismantled.
Consultations have shown that the road through the field is an
important route for Azerbaijan's fisheries, and any restriction or
damage could significantly disrupt its operations. To avoid these
risks, a Traffic and Traffic Management Plan will be prepared, the
use of the bridge in Banka village will be avoided as much as
possible and the road through the site will be kept open for
fishing. Construction works will be organized in a way that will
not interfere with their activities.
If fencing becomes necessary, an alternative route will be
offered. It is also planned to move the 6 kV line with minimal
disruptions to the work of the fishery.
"Rerouting the power line will prevent physical displacement and
minimize disruption to normal lifestyles, while a World
Bank-compliant plan will be developed to minimize remaining risks.
Also, within the framework of the EBRD's request, a Livelihood
Recovery Plan is being prepared to support the people affected by
the project," the EBRD said.
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