Azerbaijan’s First Renewables Auction Concludes Successfully At COP29 With EBRD Support

Azerbaijan recently completed its first-ever renewable energy auction, supported by technical assistance from the European Bank for Reconstruction and Development (EBRD). The results were announced at the United Nations Climate Change Conference (COP29) held in Baku. The Ministry of Energy organized the auction, and Universal International Holding Limited emerged as the winner with the lowest bid of just US$ 3.540 cents per kilowatt-hour (kWh).

The company will now develop a 100-megawatt (MW) solar power plant in the Garadagh region of Azerbaijan. The EBRD has been a key partner in Azerbaijan’s journey towards reducing carbon emissions. It has provided financial and technical support and helped shape policies, including the framework that made this competitive auction possible.

Parviz Shahbazov, the Minister of Energy of Azerbaijan, said in a statement, “This auction represents a major milestone in Azerbaijan’s renewable energy sector. The selection of Universal International Holdings Limited underscores the increasing interest and confidence of international investors in Azerbaijan’s green energy initiatives. Organised with the support of the EBRD and announced during COP29, this auction highlights Azerbaijan’s dedication to international cooperation, sustainable development goals, and unlocking its green energy potential. This achievement will accelerate our energy transition efforts while enhancing our contribution to global climate objectives.”

Alkis Vryenios Drakinos, the EBRD’s Regional Head for the Caucasus, also mentioned, “This is a great way to wrap up the EBRD’s work at COP29 in Baku. Having surpassed one gigawatt mark in financed green energy and following our consistent policy engagement with the authorities, our assistance with renewables auctions in Azerbaijan has today produced game changing success. I would like to congratulate all parties involved.”

The European Bank for Reconstruction and Development (EBRD) is playing a leading role in climate finance across the Caucasus. In Azerbaijan, the EBRD co-financed the country’s first large-scale solar power plant in 2022 and its first utility-scale wind power plant in 2023. Recently, the Bank also announced financing for the region’s two largest solar plants in Bilasuvar and Neftchala, with financing agreements signed at COP29.

On the policy side, the EBRD is working closely with Azerbaijan’s government to improve the electricity grid, create a low-carbon energy strategy, and develop a national hydrogen strategy. This blend of financial support and policy advice is aimed at attracting more private climate investment to Azerbaijan.The EBRD’s Renewable Energy Programme supports 18 countries in total. It has helped organize nearly 5 GW of renewable energy auctions in countries like Serbia, Bulgaria, Albania, Uzbekistan, Kazakhstan and Egypt, with plans for an additional 3.5 GW of auctions in Azerbaijan, Romania, Moldova, Bulgaria and Montenegro.