The Board of Directors of the European Bank for Reconstruction and Development (EBRD) plans to privide a loan of up to $30 million to Azerbaijan. Azerbaijan's Ministry of Finance will act as the borrower.
The project will help establish the energy system flexibility required to integrate Azerbaijan's renewable energy capabilities.
"The project will help to improve the flexibility of the power system in Azerbaijan required to integrate renewable energy capacities. The successful implementation of the project would set an example for further grid strengthening projects that are important for the integration of renewable energy projects in the country," the EBRD said.
According to the EBRD, the project contributes to improving the quality of "sustainable" transition by enabling the connection of planned renewable energy installations.
The project will also contribute to improving the quality of the green transition by engaging in policies aimed at institutional reforms and bringing about structural change in all sectors.
"The Bank is actively involved in the development of policy dialogue in Azerbaijan. The project will be the first engagement of the Bank focused on the modernisation of the power system required to improve the flexibility of the power system and integrate renewable energy capacities in Azerbaijan," the statement reads.
The bank will monitor compliance with the Performance Requirements by reviewing annual reports prepared by the client on environmental and social issues.
