European Bank for Reconstruction and Development exploring investment mechanisms to support Azerbaijan’s hydrogen strategy

European Bank for Reconstruction and Development exploring investment mechanisms to support Azerbaijan’s hydrogen strategy

The European Bank for Reconstruction and Development (EBRD) is exploring investment mechanisms to support Azerbaijan’s hydrogen strategy,

Nataly Mouravidze, head of the EBRD Resident Office in Azerbaijan, said in an interview with Report,

We have already supported the government in developing a National Hydrogen Strategic Outlook, which was presented at COP29 and published recently.

“Our analysis confirms that Azerbaijan is well-positioned to develop a low-carbon hydrogen economy, given its vast renewable energy resources. We are now considering supporting the implementation of this strategy, ensuring that the country can leverage hydrogen as part of its long-term energy transition”.

Another key area we are working on is helping Azerbaijan develop a sectoral low-carbon and climate-resilient pathway for power generation. This will be crucial in defining the country’s energy system for the future and ensuring a balanced, sustainable approach to decarbonization.

She noted,

Azerbaijan has taken important steps towards a greener energy mix, and we are proud to be a reliable partner in this journey.

“Our focus is on continuing to support both policy reforms and investments that will drive long-term, sustainable change in the country’s energy sector,”

She added,

Developing a green economy is another core pillar of our new country strategy and we are fully committed to supporting the country’s energy transition.

“Our engagement goes beyond financing as we are also deeply involved in policy dialogue to help shape the right regulatory framework for a sustainable economy. One of the very significant steps Azerbaijan has taken is the launch of competitive renewable energy auctions, which the EBRD has actively supported. This process ensures that projects are selected transparently and competitively, attracting the best possible investors. The country’s first renewable energy auction took place earlier last year, with the winner announced at COP29 in Baku. This was a major milestone for Azerbaijan’s green transition. Additionally, we have been working closely with the government to establish the Azerbaijan Energy Regulator Authority (AERA), which will be key to fostering a well-regulated, competitive energy market.”

In terms of investments, we have already financed over 1.2 gigawatts of renewable energy, including the Garadagh Solar Plant with Masdar (230 megawatts) and the Absheron-Khizi Wind Power Plant with ACWA Power (240 megawatts).

“More recently, we financed Bilasuvar Solar (445 megawatts) and Neftchala Solar (315 megawatts) in partnership with Masdar and SOCAR Green. These projects represent a significant step towards Azerbaijan’s target of having renewables contribute 30% of its electricity generation by 2030,”

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European Bank for Reconstruction and Development exploring investment mechanisms to support Azerbaijan’s hydrogen strategy, source

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