European Bank To Invest $21.4M In Azerbaijan’s Solar Plant

The European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and the Abu Dhabi Fund for Development (ADFD) have all approved a finance package of $114.2 million (USD) to help Azerbaijan diversify its energy mix. The funds will facilitate a 230 MW photovoltaic (PV) solar power plant near Alat town in eastern Azerbaijan will be put into operation.

Masdar Azerbaijan Energy LLC, wholly owned by Abu Dhabi Future Energy Company, will receive the finance for the development of the Garadagh Solar Project. EBRD, ADB, JICA, and ADFD already work with Masdar, a top global provider of renewable energy.

Owned by Masdar, this will be the first privately owned utility-scale solar power project in Azerbaijan. The agreement, reached on 2 August, 2022, will pave the path for increased private sector involvement in the renewable energy market in Azerbaijan, which is actively backed by the EBRD on both the policy and investment level. The company claims that the plant’s 230 MW of renewable energy will produce up to 558 Gigawatt hours (GWh) of power once it is operational.

Making more domestic gas available for export, the project will not only boost Azerbaijan’s decarbonization drive, but also improve the energy security of the European Union. Thus, the initiative will support the objectives outlined in the Sustainable Development Goals (SDGs) of the United Nations for 2030, specifically climate action, industry, innovation, and infrastructure.

In Azerbaijan, the EBRD (European Bank for Reconstruction and Development) is a significant institutional investor. 181 projects totaling more than €3.6 billion have received funding from the Bank thus far. The main objectives of the bank’s strategy in the nation are to assist Azerbaijan in diversifying its economy and expanding the non-oil private sector.