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EBRD eyes support to solar plant construction in Azerbaijani Alat

Economy Materials 25 March 2022 12:43 (UTC +04:00)
EBRD eyes support to solar plant construction in Azerbaijani Alat
Nargiz Sadikhova
Nargiz Sadikhova
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BAKU, Azerbaijan, March 25. European Bank for Reconstruction and Development (EBRD) is looking to allocate long-term senior debt of up to $51 million for construction of a solar plant Azerbaijan’s Alat settlement, Trend reports citing the EBRD.

The provision of senior debt is envisioned for the development, construction and operation of a solar photovoltaic power plant with an installed capacity of 230 MW on a site located 9 km northwest of the Alat settlement in eastern Azerbaijan (the Project).

The Project will be developed by a newly established special purpose vehicle in Azerbaijan, which will act as the borrower for the project financings. Abu Dhabi Future Energy Company PJSC (Masdar) will act as the sponsor for the project.

The Project will add 230 MW of solar generation capacity to the Azerbaijani power system and power approximately 110,000 homes. This would help substitute natural gas-based power plants and help in meeting the renewable energy targets set by the Government of Azerbaijan in line with county's commitments under the Paris Agreement.

The Project will also result in strong environmental benefits with estimated annual CO2 emissions savings of up to 200,000 tons. This will assist the country in its low-carbon transition, reducing its current high reliance on thermal power generation.

Along with the EBRD, a number of other international financial institutions are expected to support the Project. The end decision on the loan provision is expected to be made on April 27, 2022.

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