BAKU, Azerbaijan, November 18. At COP29, the Asian Infrastructure Investment Bank (AIIB) signed a financing agreement of $160 million for its first private-sector renewable energy project in Azerbaijan, marking a major step in expanding green infrastructure across the Caucasus region, TurkicWorld reports.
Partnering with Abu Dhabi Future Energy Company PJSC (Masdar), the investment will finance development, construction, operation, and maintenance of two solar photovoltaic (PV) power plants: the 315 MWAC Banka Solar PV Power Plant (Banka Solar) and the 445 MWAC Bilasuvar Solar PV Power Plant (Bilasuvar Solar). SOCAR Green, nominated by the Government of Azerbaijan, joins as Masdar’s local partner, underscoring Azerbaijan’s commitment to a low-carbon future. The Asian Development Bank and European Bank for Reconstruction and Development are also involved as co-financiers.
The project marks AIIB’s first private-sector renewable energy initiative in Azerbaijan, aligning with AIIB’s Green Infrastructure thematic priority and supporting the Bank’s Corporate and Energy Sector strategies. The solar PV plant is expected to deliver clean, affordable electricity, reduce greenhouse gas emissions by approximately 757,000 metric tonnes of CO₂-equivalent annually, and create significant local employment. The project will also help Azerbaijan meet its climate targets under the Paris Agreement and updated Nationally Determined Contributions (NDCs).
"With this project, AIIB is committed to supporting Azerbaijan’s ambitious energy transition, leveraging solar resources to create sustainable energy infrastructure and assist the country in achieving its climate goals," said Najeeb Haider, AIIB’s Director General for Project and Corporate Finance Clients, Global. "This financing underscores AIIB’s commitment to mobilizing private capital to expand renewable energy projects and secure a sustainable future for Azerbaijan and the region."
Aligned with the joint MDB principles for Climate Mitigation Finance Tracking, the project qualifies as 100% mitigation finance. It has undergone rigorous climate-risk assessments to ensure alignment with both the Paris Agreement and Azerbaijan’s National Adaptation Plan.
The transaction represents AIIB’s third project in Azerbaijan and its first non-sovereign-backed loan in the country, demonstrating the Bank’s commitment to diversifying its portfolio and strengthening renewable infrastructure across the Caucasus. To date, AIIB has financed seven projects in the Caucasus, covering sectors such as energy and transport, with a focus on sustainable infrastructure to support region’s long-term growth and resilience.
