EBRD to give first loan to Azerbaijan for green transition

12:05 - 27.02.2024


February 27, Fineko/abc.az. The Board of Directors of the European Bank for Reconstruction and Development (EBRD) on May 1 plans to consider the provision of a sovereign loan of up to $30 million to finance the purchase of autotransformer equipment for reinforcing works at four operational substations in Azerbaijan.

ABC.AZ reports, referring to the EBRD that the Republic of Azerbaijan represented by the Ministry of Finance will act as the borrower. Azerenerji OJSC – the state-owned enterprise responsible for the production and transmission of electricity in the country - will act as the implementing entity for the project.

“The project will support the purchase of autotransformer equipment for reinforcing works at four operational substations in Azerbaijan. The Project will help to improve the flexibility of the power system in Azerbaijan required to integrate renewable energy capacities. The successful implementation of the Project would set an example for further grid strengthening projects that are important for the integration of renewable energy projects in the country,” reads the message.

The project will promote the "resilient" transition quality by allowing the connection of planned renewable energy installations which currently are not possible due to inadequacy of the grid or lead to a decrease in the curtailment of existing renewable energy installations.

The project will also promote the "green" transition quality by entailing a policy engagement, which aims to deliver institutional reform and lead to structural changes across sectors/markets.

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