The World Bank’s Board of Executive Directors has approved a $173.5 million loan to support the implementation of the Azerbaijan Scaling-Up Renewable Energy (AZURE) project, Interfax reports.
According to a statement published on the World Bank’s official website, the AZURE project aims to strengthen Azerbaijan’s electricity infrastructure and diversify its energy mix by integrating more sustainable and reliable sources of power.
The funding will be directed toward expanding and modernizing the country’s electric transmission system. This initiative is expected to create a more favorable environment for private sector investment in renewable energy, particularly in wind energy.
“The project will help unlock an initial $384 million in private investments, paving the way for further renewable energy investments, as Azerbaijan considers expanding its energy exports,” the World Bank noted.
The AZURE project will focus on reinforcing key transmission lines and substations to connect the 240-Megawatt Absheron-Garadagh Wind Power Plant to the national grid. It also includes expanding the 330/500 kV high-voltage network to ensure the safe and reliable integration of up to 1 gigawatt of privately developed renewable capacity, and improving grid stability to accommodate an additional 1.8 gigawatts of renewable electricity from private investments.
This marks the first World Bank-supported project aligned with Azerbaijan’s green energy corridor initiative.
Azerbaijan has been a member of the World Bank since 1992. Over the years, the country has carried out 50 projects supported by the Bank, with total loan commitments amounting to $3.5 billion.
