- EBRD and Azerbaijan’s Ministry of Energy sign an agreement on power sector development
- Bank will support the development of low carbon and climate resilient projects
- MoU builds on years of collaboration between the Bank and the Ministry
The European Bank for Reconstruction and Development (EBRD) and Ministry of Energy of the Republic of Azerbaijan have signed a Memorandum of Understanding to further develop their cooperation in the development of the power sector in Azerbaijan. The agreement provides a framework for collaboration on Azerbaijan’s priority policy initiatives and relevant technical cooperation assignments.
Under this agreement, the Bank will continue to support the development of the low carbon and climate resilient power sector in Azerbaijan, in line with the country’s commitment to the Paris Agreement. This includes further development of renewable energy, development of sectoral low carbon pathway for the power sector, grid enhancement, improved energy efficiency, methane emissions reduction and gradual introduction of innovative technologies, including hydrogen.
The Bank and Azerbaijan have a strong track record of effective technical cooperation. The Memorandum builds on years of collaboration between the Bank and the Ministry, including support for the Energy Regulator Agency, implementation of renewable energy auctions and development of a regulatory framework for small-scale renewable energy projects, among others.
Partnership between the Bank and the Ministry has been instrumental in enabling the milestone projects including the financing of Garadagh Solar Plant, the first utility-scale solar plant in the country developed by Masdar. Earlier success stories include financing of Shah Deniz, TANAP, TAP pipelines and AZDRES power plant.
The EBRD is a leading institutional investor in Azerbaijan where it has invested more than €3.6 billion in 185 projects in the financial, corporate, infrastructure and energy sectors, with most of those investments in private enterprises. The Bank’s strategy in the country focuses on helping Azerbaijan to diversify its economy and develop the non-oil private sector.