World Bank approves loan for renewable energy project in Azerbaijan

The World Bank (WB) approved the Azerbaijan Scaling-Up Renewable Energy Project (AZURE), an initiative that will strengthen Azerbaijan’s power transmission network, enable the country to diversify its energy mix, and meet growing electricity demand through a more resilient and reliable power grid, Report informs, citing the WB.

The $173.5 million loan from the International Bank for Reconstruction and Development (IBRD) will support Azerbaijan’s efforts to expand and modernize its energy infrastructure, thus establishing the enabling conditions for the private sector to invest in Azerbaijan’s large untapped renewable energy potential, particularly in onshore wind energy.

The project will help unlock an initial $384 million in private investments, paving the way for further renewable energy investments, as Azerbaijan considers expanding its energy exports.

"This project will enable the delivery of reliable, affordable, and sustainable electricity that people and businesses in Azerbaijan can depend on," said Stefanie Stallmeister, World Bank Country Manager for Azerbaijan. "By supporting the strengthening of the power grid, we are helping Azerbaijan achieve its long-term vision for energy security, creating the foundation for sustained growth and opportunity."

The AZURE project focuses on expanding and reinforcing key transmission lines and substations to connect the 240-Megawatt Absheron-Garadagh Wind Power Plant to the transmission grid, strengthen and expand the 330/500 kV high-voltage grid to ensure safe and reliable evacuation of up to 1 Gigawatt of privately developed renewable power generation, and improve grid stability to better integrate 1.8 Gigawatts of renewable electricity through private investments.