BAKU, Azerbaijan, April 5. The AZURE project, which was discussed with World Bank experts on April 5 at the Azerbaijani Energy Ministry in Baku, is still in its preliminary discussion phase, with ongoing clarification of differences between the Azerbaijani government and the World Bank regarding it, an informed source told Trend.
"The project to promote green energy and economy in Azerbaijan is being prepared, and the government hopes to have it ready for execution by 2025. Discussions on this project's preparation started in February 2024. But the World Bank raises concerns about the timeline and suggests 2027, sparking contentious discussions," the source noted.
The main provider of electricity in the nation, AzerEnerji, takes part in the in-depth discussions regarding the creation of this project on behalf of Azerbaijan.
"The realization of this project hinges on successful negotiations. The World Bank may facilitate the procurement of essential equipment and components, although specifics and investment volumes are still under review, with numerous issues necessitating harmonization," the source explained.
In December 2023, Rolande Pryce, the World Bank Regional Director for the South Caucasus, told Trend about the organization's intent to collaborate with Azerbaijan on green initiatives, including decarbonization, encouraging private investments in renewable energy sources, and enhancing energy efficiency.
In particular, Pryce noted that investments in wind and solar projects in Azerbaijan are in line with the WB's regional initiatives.
There is also interest in the Black Sea Energy submarine cable laying project to export clean energy from the Caspian to Europe.
WB is also willing to study the prospects of Azerbaijan's hydrogen industry.
Azerbaijan and the World Bank have been cooperating for more than 30 years. The organization has supported 56 private sector development projects worth more than $500 million, as a result of which about 4,000 workplaces have been created.
In general, the total amount of Azerbaijan's loans from the World Bank structures to date amounts to $3.5 billion.