EBRD Backs Azerbaijan’s Largest Solar Project With Major Financing At COP29

At COP29 in Baku, the European Bank for Reconstruction and Development (EBRD) revealed a significant investment in Azerbaijan’s renewable energy future. Teaming up with the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), the EBRD will help fund two major solar power projects. Each of the three banks is contributing US$ 160 million to the construction of the two plants, which will have a combined capacity of 760 MW, marking a milestone for Azerbaijan’s green energy progress.

Masdar and SOCAR Green, the sponsors of two major solar projects in Azerbaijan, have started construction on solar parks in Bilasuvar and Neftchala, with capacities of 445 MW and 315 MW, respectively. These projects are the largest renewable energy initiatives in the Caucasus and are set to be operational by 2027. This marks a key milestone in Azerbaijan’s journey to meet its target of generating 30% of its electricity from renewable sources by 2030.

Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, said in a statement, “We are very pleased to be financing these solar plants, the largest to date in the Caucasus, saving over 600,000 tonnes of CO2 annually. In addition to the real-world impact of powering up to 300,000 homes with green energy, this significant investment will transform the entire renewable energy market in the region.”

The EBRD is at the forefront of climate action, driving green projects and encouraging private-sector investment in its regions. In 2023 alone, the Bank dedicated over €6.5 billion to green financing, making up half of its total investments. As the largest institutional investor in the Caucasus, the EBRD has been active in Azerbaijan for more than 30 years, supporting 191 projects with investments exceeding €3.7 billion. This includes backing Azerbaijan’s first utility-scale solar power plant, developed by Masdar, and financing over 1.2 GW of renewable energy capacity in the country.