The World Bank (WB) has announced plans to attract private investments in renewable energy (RE) and battery energy storage systems (BESS) in Azerbaijan.
The WB told Report that the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC), both part of the World Bank Group, are exploring the potential for private investments in the RE and BESS sectors in Azerbaijan.
The World Bank informed Report about this. In turn, the Multilateral Investment Guarantee Agency (MIGA) is considering providing credit guarantees to international investors, while financial intermediaries in the country will receive support to simplify financing and reduce the risks of climate investments.
One of the areas of focus will be the development of offshore wind energy. In this context, a seminar based on the "Roadmap for Offshore Wind Energy in Azerbaijan," developed by IBRD and IFC, is planned. However, attracting private capital will require open competitive tenders.
The World Bank Group intends to combine the efforts of the government and the private sector to help Azerbaijan become an exporter of "green energy" and integrate into the regional energy system as part of the formation of a "green energy corridor" with neighboring countries. Additionally, the World Bank is ready to support initiatives to reduce methane emissions, particularly in the area of combating gas flaring, if the government expresses interest in such projects.
The energy program will aim to increase the share of RE in the country's energy balance and expand the transmission lines capacity to integrate renewable energy, the bank said, adding that to coordinate these efforts, IBRD, IFC, and MIGA have already developed a working business plan that defines how various tools and support mechanisms will be used at different stages of the implementation of initiatives.
