Highlights
- EBRD finances 445 MW and 315 MW solar projects in Bilasuvar and Neftchala
- Plants co-financed by ADB and AIIB and expected to operate from 2027
- EBRD has now financed more than 1.2 GW of renewable energy capacity in Azerbaijan
The European Bank for Reconstruction and Development (EBRD) has announced a landmark investment at the 29th annual United Nations Climate Change Conference in Baku (COP29), financing two utility-scale solar projects alongside the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
The three multilateral development banks will each provide US$ 160 million, supporting the construction of two solar power plants in Azerbaijan with a combined capacity of 760 MW.
The sponsors for the two projects, Masdar and SOCAR Green, have already broken ground on the 445 MW and 315 MW solar parks in Bilasuvar and Neftchala - the largest renewable energy projects in the Caucasus - and plan to commission them in 2027.
This represents a significant step towards achieving Azerbaijan's goal of increasing renewable energy's share of total power generation to 30 per cent by 2030.
Nandita Parshad, Managing Director of the EBRD's Sustainable Infrastructure Group, said: "We are very pleased to be financing these solar plants, the largest to date in the Caucasus, saving over 600,000 tonnes of CO2 annually. In addition to the real-world impact of powering up to 300,000 homes with green energy, this significant investment will transform the entire renewable energy market in the region."
The EBRD is a leader in financing climate action and mobilising private-sector finance across its economies. In 2023 alone, the Bank provided over 6.5 billion in green financing, with that funding accounting for 50 per cent of its total investment.
The EBRD is also the largest institutional investor in the Caucasus and has worked in Azerbaijan for over 30 years. The Bank has invested more than 3.7 billion in Azerbaijan through 191 projects - including the country's first utility-scale solar power plant, which was recently commissioned by Masdar. In total, the Bank has now financed more than 1.2 GW of renewable energy capacity in Azerbaijan.
By Rezo Bitsadze
