EBRD to support renewable energy development in Azerbaijan, with geothermal an option
The European Bank for Reconstruction and Development (EBRD) will consider the possibility of financing the renewable energy projects in Azerbaijan. With a geothermal potential estimated at 800 MW, the funding could also support development of geothermal projects for power generation and heat production.
Reported late last month, the European Bank for Reconstruction and Development (EBRD) will consider the possibility of financing the renewable energy projects in Azerbaijan, after they are developed as part of the bank’s technical assistance, head of the EBRD Baku office Ivana Duarte told AzerNews.
Presently, EBRD pays special attention to development and capacity-building in the Agency for Regulation of Energy Issues of Azerbaijan, she said, adding that cooperation with Azerbaijan’s Ministry of Energy is also at a high level.
Duarte noted that the bank supports the revision and development of the necessary legal and structural bases for renewable energy in Azerbaijan.
In addition, the power supply systems are being studied and all these activities are funded through the EBRD technical assistance, Duarte said.
Once the projects are ready for implementation, EBRD will consider them for possible financing, she added.
Azerbaijan aims to increase usage of renewable energy sources and the country has all opportunities for this.
Azerbaijan is currently taking serious steps to develop alternative energy. To this end, negotiations are underway with foreign companies and investors, including companies from China, the UAE, the U.S. and the EU.
For example, the Norwegian company DNV GL will help create a support system and a legal framework in Azerbaijan’s alternative energy sector.
The capacity of the energy system of Azerbaijan is more than 6,000 megawatts. At the same time, according to experts, the potential of renewable energy sources in the country is more than 25,300 megawatts. Most of the country’s potential in this area falls on solar energy, while it is estimated at 5,000 megawatts.
It is estimated that there is a wind power generation potential of 4,500 MW, 1,500 MW for biomass, 800 MW for geothermal energy (as we reported on in 2015), and 350 MW for small hydro power plants.