The European Bank for Reconstruction and Development (EBRD) will provide a long-term senior loan of up to $80 million for the development, construction and operation of a solar photovoltaic power plant with an installed capacity of 315 MW on a site located in the Neftchala district in eastern Azerbaijan, EBRD announced, Report informs.
The project will be developed by a newly established special-purpose vehicle in Azerbaijan, which will act as the borrower for the project. Abu Dhabi Future Energy Company PJSC (Masdar) will act as the sponsor for the project.
According to the EBRD, the project will add 315 MW of solar photovoltaic power generation capacity to the Azerbaijani power system. This would help substitute natural gas-based power plants and help the Government of Azerbaijan in meeting the renewable energy targets set in line with the country's commitments under the Paris Agreement. The project will also result in strong environmental benefits with estimated annual CO2 emissions savings of up to 314,000 tonnes. This will assist the country in its low-carbon transition, reducing its current high reliance on thermal power generation.
The transition impact of the project is expected to come mainly from its alignment with the EBRD's Green Economy Transition approach (GET) as it will allow producing electricity using solar power, which will assist the country in its low-carbon transition, reducing its current high reliance on thermal power generation.