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Akbar Novruz

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The European Bank for Reconstruction and Development (EBRD) invested a record-breaking €16.6 billion in 2024, portraying a 26% increase compared to 2023. This milestone reflects the bank's growing role in driving economic development across its member countries. Of this total, 76% (€12.5 billion) was directed toward private sector initiatives, marking another historic achievement, while 58% (€9.7 billion) was allocated to green economy projects, reinforcing the EBRD’s commitment to sustainability.

Azerbaijan has been a significant beneficiary of the EBRD’s strategic initiatives in 2024, particularly in the renewable energy and financial sectors. Aligning with Azerbaijan’s COP29 climate agenda, the EBRD supported the government’s first renewable energy auction, resulting in the planned development of a 100 MW solar power plant in Garadagh.

The European Bank for Reconstruction and Development (EBRD) has also approved the allocation of a long-term loan of USD 66 million for the design back in November, construction, and operation of the 315 MW Banka Solar photovoltaic power plant in the Neftchala district of eastern Azerbaijan.

The total cost of the project is USD 283 million, and its implementation will also be supported by several other international financial institutions.

The project will be carried out by Masdar, a subsidiary of the UAE's Abu Dhabi Future Energy Company.

The project will add 315 MW of solar energy to Azerbaijan's energy system, which will replace electricity generated by natural gas power plants. This will help Azerbaijan achieve its renewable energy goals under the Paris Agreement. The project is expected to reduce CO2 emissions by 314,000 tons annually and contribute to Azerbaijan's transition to a low-carbon economy, as well as reduce dependence on thermal generation.

In addition to green energy, the EBRD played a pivotal role in diversifying Azerbaijan’s economy. The first Initial Public Offering (IPO) by the International Bank of Azerbaijan, supported by the EBRD, symbolizes a leap forward in modernizing Azerbaijan's financial infrastructure. This IPO, expected to conclude by the end of 2024, is a key milestone in attracting foreign investment and improving market efficiency.

EBRD President Odile Reno-Basso remarked on the institution’s successes: "In 2024, we achieved record results in terms of both volume and quality. We not only broke previous records but also significantly exceeded them. The main directions of our work remain support for Ukraine, ‘green finance,’ and strengthening gender equality."

Azerbaijan’s alignment with the EBRD’s goals highlights its ambition to strengthen its economy through green initiatives, financial modernization, and enhanced regional integration. As the EBRD expands its operations, Azerbaijan is well-positioned to leverage these investments for sustainable growth, increased energy independence, and economic resilience.