EBRD may approve first loan to Azerbaijan for green transition by year-end

16:23 - 29.05.2024

May 29, Fineko/abc.az. The Board of Directors of the European Bank for Reconstruction and Development (EBRD) may approve a loan of up to $30 million for Azerenergy OJSC by the last quarter of this year.

ABC.AZ reports that the EBRD stated that the project is currently under consideration, and the final outcome has not yet been presented to the Board of Directors.

It is noted that the borrower will be the Ministry of Finance, and the executor will be Azerenergy OJSC. The total cost of the project is $30 million. The loan will finance the purchase of autotransformer equipment for reinforcement works at four operating substations in Azerbaijan.

This project will be the EBRD's first project aimed at modernizing the electricity grid, necessary to increase its flexibility and integrate the potential of renewable energy sources (RES). The successful implementation of this project will serve as a model for further grid strengthening projects, which are important for the integration of future RES projects, the EBRD said in a statement.

The project will also contribute to institutional reforms and improve the quality of the "green transition".