The European Bank for Reconstruction and Development (EBRD) has approved a long-term senior loan of up to $80 million to support the development, construction, and operation of the Banka Solar project in Azerbaijan. The project, developed by a newly established special purpose vehicle and sponsored by Masdar, will add 315 megawatts (MW) of solar photovoltaic power generation capacity to the Azerbaijani power system.
The Banka Solar project is expected to contribute to Azerbaijan’s low-carbon transition by reducing its reliance on thermal power generation and helping the country meet its renewable energy targets under the Paris Agreement. The project will also result in significant environmental benefits, with estimated annual CO2 emissions savings of up to 314,000 tonnes.
The EBRD’s financing for the project is considered innovative for the Azerbaijani power sector and is not available from local banks. The Bank’s involvement in the project is also expected to contribute to the development of the renewable energy sector in Azerbaijan and foster a more sustainable energy mix.
The project is expected to have a positive impact on the local economy by creating jobs and stimulating economic activity in the region. It is also expected to contribute to the development of a more resilient and sustainable energy system in Azerbaijan.
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 has approved a loan to support the development of a 315 MW solar photovoltaic power plant in Azerbaijan. The project will contribute to the country's low-carbon transition and reduce reliance on thermal power generation.){kind=link}