The European Bank for Reconstruction and Development (EBRD) has approved a long-term loan of $95 million for the development, construction, and operation of the Bilasuvar Solar SPV power plant with a capacity of 445 MW in Azerbaijan's Bilasuvar district, Report informs referring to the bank's statement.
The total project cost is $383 million, and several other international financial institutions will support its implementation.
The project is being implemented by Masdar's subsidiary (UAE) - Abu Dhabi Future Energy Company.
The new solar plant will increase renewable energy generation capacity in Azerbaijan, helping to replace gas power plants and achieve carbon emission reduction goals in line with the Paris Agreement. The expected annual CO2 emissions savings are up to 442,000 tons. This will play a key role in the country's transition to a low-carbon economy and reducing dependence on thermal power. Environmental assessment showed that the project will not significantly impact biodiversity zones for waterfowl.
Site studies and local authorities confirmed that no cultural heritage objects were found in the area, however, a precautionary procedure was established for handling any unexpected archaeological discoveries during the construction phase. The 90-kilometer, 330 kV transmission line connecting the solar plant to the Navahi substation runs near two key bird areas and an important migration corridor.
The Azerbaijani government, responsible for building this line, will need to comply with World Bank Environmental and Social Standards, including adjusting the line route to avoid environmentally sensitive zones and minimize risks to birds. The project site includes 1,454 hectares of agricultural land that will be transferred to the Ministry of Energy for project implementation.
The area is used by herders for grazing animals, mainly in winter. The project will lead to the forced physical and economic displacement of 12 herder households considered vulnerable. Impact on three households has already occurred. The impact associated with land acquisition for auxiliary facilities, including the 90-kilometer transmission line from the project to Navahi station (affecting 84 households), will be regulated by the Azerbaijani government in accordance with World Bank requirements under their AZURE project agreement.
To minimize socio-economic consequences, the transmission line route will be adjusted to avoid resettlement and reduce disruption to the population's usual way of life. According to World Bank standards, a special plan will be developed to reduce residual risks, reads the statement.