Azerbaijan’s Energy Efficiency Fund to provide loans of up to $6M

The Energy Efficiency Fund, established by a decree signed by President Ilham Aliyev on March 1, 2024, is set to offer small, medium, and large loans to support sustainable development in Azerbaijan, Eldar Ahmadov, Deputy Head of the Economy Department of the Ministry of Energy, said at the conference themed “The role of small and medium-sized businesses in the green economy” held in Baku, Report informs.

According to Ahmadov, small loans from 1,000 to 50,000 manats will be granted for 5 years, medium loans from 50,000 to 1,000,000 manats for 10 years, and large loans from 1,000,000 manats to 10,000,000 manats for 15 years.

“The Energy Efficiency Fund is expected to commence operations by the end of this year or early next year. The fund will be financed through loans, grants, voluntary contributions from legal entities and individuals, and allocations from international organizations and donors. Additionally, the fund will generate income from managing these resources. The resources will be allocated towards implementing energy management, ‘smart’ meters and systems, highly efficient cogeneration installations, renewable energy utilization, scientific achievements in energy efficiency, and the creation of new materials, techniques, and technologies in the field of energy efficiency,” Ahmadov said.

($1 manat = 1.7AZN on September 9)