The European Bank for Reconstruction and Development (EBRD) has rescheduled the approval of a sovereign loan of up to $30 million for Azerbaijan's state-owned power utility, Azerenergy. The loan, initially set for approval on May 1, will now be considered by the EBRD Board of Directors on September 11.
The funds are intended to finance the purchase of autotransformer equipment for reinforcement works at four existing substations in Azerbaijan.
The borrower will be Azerbaijan's Ministry of Finance, while the project implementation will be carried out by Azerenergy, the state-owned company responsible for electricity generation and transmission in the country. The total project cost is estimated at $30 million.
The project will help increase the flexibility of Azerbaijan's power system, necessary for the integration of renewable energy capacities, the EBRD said adding that the successful implementation of the project will serve as an example for further grid strengthening projects, which are important for the integration of renewable energy sources in the country."
The project is expected to contribute to the quality of Azerbaijan's sustainable transition by enabling the connection of planned renewable energy installations, which is currently not possible due to inadequate grid infrastructure. It will also promote the quality of the "green" transition by engaging in policy dialogue aimed at institutional reforms and structural changes across all sectors.