BAKU, Azerbaijan, December 2. The European Bank for Reconstruction and Development (EBRD) is providing significant financial support to Azerbaijan’s renewable energy sector through the development of two major solar parks in Bilasuvar and Neftchala, said Alkis Vryenios Drakinos, Regional Head of the Caucasus for the EBRD, in an interview with Trend.
"These two solar parks in Bilasuvar and Neftchala will be delivered and constructed by a joint venture between Masdar (75 percent) and SOCAR Green, showing Azerbaijan's commitment to supporting the green agenda and the country's green ambitions," he noted.
The projects, which represent an investment of 160 million euros, are being co-financed by the EBRD, the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB). "AIIB, ADB, and EBRD are joining forces to finance this project and make it a reality," Drakinos emphasized.
These solar parks are part of a broader renewable energy strategy supported by the EBRD in Azerbaijan. Following the Alat solar project in 2022 and the Absheron Khizi wind project in 2023, the EBRD has facilitated the development of 1.2 GW of renewable energy capacity in Azerbaijan over the last three years.
"We are fully aware that Azerbaijan is an oil-rich country and that the economy is still largely dominated by the fossil fuel sector," Drakinos said. "However, we see strong political will and growing awareness of the global challenge, with Azerbaijan positioning itself as a country committed to renewable energy. Azerbaijan is set to be a strong player and partner in addressing the global challenge of climate change".
The EBRD’s commitment to Azerbaijan extends beyond renewable energy. The bank is also advancing initiatives such as the Green Cities program, which integrates sustainable practices into urban development projects, including water management systems.
"With every financing we do, we include green elements and conditions," Drakinos explained, underscoring the EBRD’s approach to fostering sustainability across its investments.