BAKU, Azerbaijan, July 14. The World Bank Group (WBG) has approved a loan to support the implementation of the “Renewable Energy Deployment Project in Azerbaijan,” allocating 173.5 million in credit funding, the WBG told Trend.
The funding, extended through the International Bank for Reconstruction and Development (IBRD), will back the “Renewable Energy Deployment Project in Azerbaijan,” which aims to modernize the country’s power grid and integrate new clean energy sources over the next several years. The agreement was finalized between AzerEnerji OJSC, represented by Chairman Baba Rzayev, and WBG's Country Manager for Azerbaijan, Stefanie Stallmeister. Azerbaijan’s Minister of Finance, Sahil Babayev, signed the guarantee on behalf of the government.
The loan, issued on a 15-year term with a 5-year grace period, will go toward the construction of high-voltage transmission lines and the installation of key infrastructure, including a new substation. The government of Azerbaijan will contribute over $31.2 million, covering value-added tax and customs fees.
The information indicates that the four-year project aims to enhance the performance of AzerEnerji’s power system and support the secure integration of upcoming renewable energy sources into the national grid over the next five years. Under the plan, WBG will finance the construction of four high-voltage transmission lines—rated at 500 and 330 kilovolts, with a combined length of 341 kilometers, along with the procurement of transformers and auxiliary equipment for the planned 500/330/10 kV Navahi substation.
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