EBRD to fund major solar projects in Azerbaijan Boosting renewable energy capacity

The European Bank for Reconstruction and Development (EBRD) is set to provide significant financial support for renewable energy in Azerbaijan, starting with a long-term loan of up to $80 million for the construction of the Banka Solar photovoltaic power plant in Neftchala district.

With a capacity of 315 MW, this project will help Azerbaijan transition from natural gas-fired power generation, aiming to reduce CO2 emissions by 314,000 tons annually and align with the country's renewable energy targets under the Paris Agreement, Caliber.Az reports via local media.

In a related initiative, the EBRD is also planning to approve a loan of up to $100 million for the development of the Bilasuvar Solar SPV, which will have a capacity of 445 MW.

Like the Banka Solar project, this venture is being implemented by the Abu Dhabi Future Energy Company, a subsidiary of Masdar (UAE), and will further enhance Azerbaijan’s renewable energy generation capacity.

This new solar facility is expected to save up to 442,000 tons of CO2 emissions each year, marking a critical step in the country's efforts to reduce reliance on thermal power and foster a low-carbon economy. Both projects are anticipated to receive approval from the EBRD Board of Directors on October 22.