EDB: Over $600M invested in Azerbaijan's renewable energy sector in 2022-2024

Between 2022 and 2024, international financial institutions invested over $600 million in Azerbaijan's renewable energy sector, Report informs, citing the Eurasian Development Bank (EDB).

Renewable energy has emerged as a new investment trend for international financial institutions. In just three years, from 2022 to 2024, they allocated $3 billion to the renewable energy sector in the Eurasian region-compared to a total of $4.4 billion since 2008.

Among the top contributors during this period were the European Bank for Reconstruction and Development (EBRD) with $1.4 billion (47%), the International Finance Corporation (IFC) with $426 million (14%), and the Asian Infrastructure Investment Bank (AIIB) with $385 million (13%).

The main beneficiaries of these investments were Uzbekistan ($1.8 billion), Azerbaijan ($675 million), and Kazakhstan ($280 million).

Jointly financed projects between 2022 and 2024 amounted to $2.4 billion. IFC contributed $807 million, the Asian Development Bank (ADB) $512 million, EBRD $441 million, and AIIB $355 million.

Azerbaijan received $326 million in co-financing, particularly in renewable energy, alongside Uzbekistan ($1 billion) and Kazakhstan ($90 million). Mongolia and Uzbekistan also benefited in the financial sector with $310 million and $161 million, respectively.

One of the largest co-financed projects during this period was a $170 million loan approved by AIIB in 2024. The funding supports the development, construction, operation, and maintenance of two solar power plants in Banka and Bilasuvar, Azerbaijan. The project's total value is $670 million and includes financing from other institutions, including EBRD.