BAKU, Azerbaijan, September 21. The European Bank for Reconstruction and Development (EBRD) plans to finance the construction of a 445 MW solar power plant in Azerbaijan's Bilasuvar district, TurkicWorld reports.
According to the EBRD, approval of the loan is expected on October 22.
The project worth $380 million will be supported by a loan of up to $100 million from the EBRD. The project will be implemented by Abu Dhabi Future Energy Company PJSC (a subsidiary of Masdar).
Besides the EBRD, several other international financial institutions are expected to support the project.
The project aims to increase the share of renewable energy in the country, reducing dependence on natural gas and reducing carbon dioxide emissions by 442,000 tons per year. The project will support Azerbaijan's environmental objectives under the Paris Agreement.
The project involves the use of innovative financing structures and includes strict environmental and social standards. Particular attention will be paid to minimizing environmental impacts and ensuring the protection of biodiversity. The project area partially overlaps with waterfowl habitat, but studies have shown that no negative impact on nature is expected.
The solar power plant will be an important step in Azerbaijan's energy transition to a low-carbon economy and will contribute to the country's environmental goals.
Furthermore, it is expected that the project will have an energy transition impact mainly due to its alignment with the EBRD's Green Economy Transition (GET) approach as it will allow for solar power generation.
