The European Bank for Reconstruction and Development (EBRD) sanctioned a loan of USD 80 Million for the construction of a Solar project in Azerbaijan. The Banka Solar project in Azerbaijan will produce 315 megawatts (MW) of solar power, increasing the country’s renewable energy capacity. This project is sponsored by Masdar, a leading Middle Eastern renewable energy arm. The project will use solar technology to harness sunlight and provide energy to the power grid.
The Banka Solar is one of the steps on the curve of transition towards low-carbon energy in Azerbaijan. It is closely aimed at gradually decreasing thermal energy production dependence in the country; moreover, it would bring Azerbaijan closer to renewable energy sources to fulfill the requirements of the Paris Agreement. Azerbaijan will thus be on the right track to saving around 314,000 tonnes of CO2 emissions in the long run due to this project, positively affecting the environment.
EBRD financing is a first for the power sector in Azerbaijan. Funding of this kind is rarely offered by local banks. It will help to promote development in Azerbaijan’s renewable energy sector. Eventually, resulting in a more environment-friendly energy combination for Azerbaijan. Employment of people in the region will be ensured. Moreover, this project will help build a stronger and much more sustainable energy system for Azerbaijan.
Co-operation on the part of the international community, represented through the support of the EBRD, further highlights the energy challenges toward an international cause. It is a step taken by Azerbaijan to decrease carbon emissions, minimize anthropogenic environmental influence, and develop a more sustainable energy system.
