EBRD intends to provide loan to Azerenerji for "green transition"

The Board of Directors of the European Bank for Reconstruction and Development (EBRD) may approve a loan of up to $30 million to be allocated to Azerenerji by the last quarter of this year.

The EBRD said that the project is currently under consideration and the final result has not yet been submitted to the Board of Directors, Report informs.

It is noted that the borrower will be the Ministry of Finance, and the executor - Azerenerji. The total cost of the project is $30 million. The loan will finance the purchase of autotransformer equipment for reinforcement works at four substations operating in Azerbaijan.

"This project will be the EBRD's first project to modernise the electricity grid, necessary to increase its flexibility and integrate the potential of renewable energy sources (RES). The successful implementation of this project will provide a model for further grid strengthening projects, which are important for the integration of future RES projects," the EBRD said in a statement.

The project will also support institutional reforms and improve the quality of the green transition.