EBRD backs Azerbaijan’s shift from fossil fuels to renewable exports

Elisabetta Falcetti, Managing Director of the European Bank for Reconstruction and Development (EBRD) for Türkiye and the Caucasus, highlighted prospects for railway rehabilitation in Nakhchivan, investments in green cities in Azerbaijan, and the country’s potential role as a key exporter of renewable electricity to the European Union.

“Azerbaijan is an important part of the EBRD Green Cities agenda. In Ganja, we helped develop the Green City Action Plan, a long-term strategy to make the country's second-largest city healthier, more sustainable and more liveable. We are also supporting priority investments in solid waste management, street lighting and water infrastructure,” she said, Caliber.Az reports, citing local media.

Falcetti noted that the program is now shifting from planning to implementation. “Following the signing of the first €35 million loan, we are preparing a second €120 million loan to improve water and wastewater infrastructure in Ganja. The total investment programme is estimated at around €410 million, which shows the scale of ambition behind this work.”

She added that EBRD support is also expanding beyond Ganja. “In Shaki, for example, we plan to sign a €91 million loan this year for the construction and rehabilitation of water, wastewater and stormwater infrastructure.”

“In Baku and the Absheron Peninsula, we have started a feasibility study to improve water supply for more than 3 million people. We are also exploring how the Bank could support urban regeneration in legacy pollution sites in Baku, turning environmentally damaged areas into healthier and more attractive spaces for communities and local investments.”

Asked about Azerbaijan’s role in Europe’s energy security through renewable electricity exports, Falcetti said the country already plays a significant role in regional energy supply.

“Azerbaijan already plays an important role in regional energy security. For decades now, the country has been Europe’s reliable energy partner. Now, we see that Azerbaijan aims to take this partnership one step further – this time to become a reliable green energy partner for Europe.”

She stressed the EBRD’s readiness to support this transition. “At the EBRD, we see ourselves as a strong partner in this transition and stand ready to support Azerbaijan in achieving its renewable energy potential.”

However, she warned that scaling up exports would require significant structural work. “But this is a very complex undertaking as exporting renewable energy will require greater scale, bankable cross-border infrastructure and regulatory alignment. For this to materialise, Azerbaijan will need to move towards a multi-gigawatt pipeline sooner rather than later.”

By Vafa Guliyeva