Azerbaijan, EBRD discuss financing for Southern Gas Corridor expansion

Azerbaijani Energy Minister Parviz Shahbazov held a meeting with Sule Kilic, Director of Energy for Eurasia and Türkiye at the European Bank for Reconstruction and Development (EBRD), to explore financial support opportunities for the expansion of the Southern Gas Corridor (SGC) amid growing regional energy security challenges.

According to a statement from the Ministry of Energy, both sides expressed satisfaction with their longstanding cooperation and praised the EBRD’s role in financing Azerbaijan’s renewable energy sector, Caliber.Az reports, citing local media.

The minister highlighted the bank’s long-term credit support for several key renewable energy projects, including the 230 MW Garadagh Solar Power Plant, the 240 MW Khizi-Absheron Wind Farm, the 315 MW Banka Solar Power Plant, and the 445 MW Bilasuvar Solar Power Plant.

During the meeting, the Azerbaijani side also provided detailed information about ongoing domestic and export-oriented electricity projects. Discussions included prospects for future cooperation with the EBRD in implementing green energy interconnectors.

The parties further examined the potential for EBRD financing of "green" energy corridors.

The Southern Gas Corridor (SGC) is a strategically important infrastructure project aimed at delivering Azerbaijani gas to European markets, enhancing diversification of energy sources and routes. Operational since 2020, the SGC currently transports Azerbaijani natural gas from the Shah Deniz field through Georgia and Türkiye to southern Europe, primarily via the Trans Adriatic Pipeline (TAP).

Amid heightened concerns over energy security in Europe following the Russia-Ukraine conflict, Azerbaijan has positioned itself as a reliable energy partner for the EU. In July 2022, Baku and Brussels signed a strategic energy partnership agreement to double gas exports to Europe by 2027.

Simultaneously, Azerbaijan is pursuing an ambitious energy transition strategy. The country aims to generate 30% of its electricity from renewable sources by 2030, and to become a green energy exporter through future electricity corridors connecting Azerbaijan with Georgia, Romania, and Hungary. These green corridors are supported by multilateral initiatives such as the Black Sea Energy submarine cable project and are being closely followed by international financial institutions, including the EBRD.

By Khagan Isayev