Minister: Azerbaijan aims to not only produce but also export green energy

Azerbaijan is stepping up its commitment to renewable energy, aiming to become not only a producer but also an exporter of green energy, Finance Minister Sahil Babayev announced at a loan agreement signing ceremony with the World Bank.

Minister Babayev expressed deep appreciation for the World Bank Group’s ongoing support of development programs in Azerbaijan, highlighting the importance of expanding cooperation with international financial institutions through the newly signed loan agreement, Caliber.Az reports via local media.

He emphasised that Azerbaijan boasts abundant renewable energy resources, with significant technical potential in solar, wind, and hydropower. The government’s goal is to increase the share of renewables in the national energy mix and actively participate in the global green agenda, especially as the host and chair of COP29.

The $173.5 million loan agreement, signed on July 1, will fund the modernisation and strengthening of Azerbaijan’s energy transmission infrastructure. This will ensure the safe and sustainable integration of electricity generated by new renewable energy plants currently under construction into the country’s national grid.

The loan carries a 15-year repayment term, including a five-year grace period, with full repayment expected by 2039. The Azerbaijani government is contributing $31.2 million toward the project, primarily to cover value-added tax and customs duties.

This partnership marks a significant step toward Azerbaijan’s vision of expanding its green energy sector and exporting renewable power to regional and international markets.

By Sabina Mammadli