BAKU, Azerbaijan, March 3. Azerbaijan becomes an exemplary model in the field of green energy for the region, Sule Kilic, Head of the Energy Department for the Eurasian Region of the European Bank for Reconstruction and Development (EBRD), said at the 12th meeting of the Southern Gas Corridor Advisory Council Ministers and the 4th meeting of the Green Energy Advisory Council Ministers, held in Baku today, Trend reports.
According to her, connectivity encompasses cooperation between Azerbaijan and other countries in both transport and digital areas – Georgia, Türkiye, Romania, Hungary, Bulgaria, Uzbekistan, and Kazakhstan.
“EBRD operates in all of the countries. Azerbaijan has an important central position, bringing all these countries together, acting as a real bridge between two continents of the world.
These ambitious infrastructure projects will require large volumes of renewable energy. Azerbaijan and the region as a whole can provide this potential. The EBRD is one of the main supporters of the decarbonization agenda here, including in Azerbaijan. The bank has financed more than 1.2 gigawatts of renewable energy capacity in the country. This includes Azerbaijan’s first two large-scale, privately owned power plants – the 230-megawatt Garadagh Solar Power Plant and the 240-megawatt Khizi-Absheron wind power project, as well as the two largest renewable energy projects in the Caucasus, 445-megawatt and 350-megawatt solar power plants in Bilasuvar and Neftchala districts, respectively. These projects are expected to generate approximately 3,000 gigawatt-hours of clean electricity annually and reduce carbon emissions by more than 1.4 million tons per year," Kilic explained.
She noted that the EBRD’s support for Azerbaijan’s energy transition and renewable energy development isn't limited to investments.
“Over the years, the bank, working closely with the Ministry of Energy of Azerbaijan, has supported the formation of an enabling environment that encourages investments in the renewable energy sector through various policy initiatives.
For example, since 2018, the EBRD has been providing technical assistance in Azerbaijan to develop relevant energy legislation. This legislative framework is one of the main conditions for attracting international investors to the Azerbaijani energy sector, and its successful results can already be seen.
The EBRD also supported the preparation of the first renewable energy auction held in Azerbaijan, the results of which were announced within the framework of COP29. The auction was an important milestone in the country’s renewable energy sector and resulted in the formation of highly competitive tariffs.
At the same time, Azerbaijan has taken an important step towards a greener future with the presentation of the National Hydrogen Strategy, developed with the support of the EBRD within the framework of COP29. This is a continuation of the bank's support for the preparation of a market study on a low-carbon hydrogen economy in Azerbaijan in 2023. That study identified the commercial viability of green hydrogen production, its supply opportunities for the regional energy market, as well as domestic consumption areas.
Currently, the EBRD continues to support the Ministry of Energy in developing a low-carbon and climate-resilient development roadmap for the electricity generation sector, as well as in the implementation of the National Hydrogen Strategy.
We believe that both of these initiatives will create numerous investment opportunities for private investors not only in Azerbaijan, but also in the region as a whole. In fact, Azerbaijan plays the role of an exemplary model for the countries of the region in these areas," the bank official added.
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