BAKU, Azerbaijan, August 24. The first renewable energy auction is expected to be launched in Azerbaijan later this year, Nataly Mouravidze, Head of the European Bank for Reconstruction and Development (EBRD) in Azerbaijan, told Trend.
"We are very proud to have supported the first privately owned, utility-scale solar power plant in Garadagh. The installed capacity there will be 230 megawatts. Nevertheless, we do not want to stop there. We are also working with Azerbaijan’s Ministry of Energy to develop the renewable energy auctions scheme and we expect the launch of the first renewable energy auction later this year," she said.
According to Mouravidze, the EBRD remains in close contact with different developers who are planning to implement new renewable energy projects in Azerbaijan.
"We remain steadfast in our support of Azerbaijan’s renewable energy ambitions declared through the country’s resolute Paris Agreement commitments," she added.
The head of EBRD operations in Azerbaijan also pointed out that the bank has been working with the authorities since 2022 to assess the potential for a low-carbon hydrogen economy in the country.
"The study showed that Azerbaijan is more than capable to produce renewable hydrogen, which can in turn support local decarbonization and provide cost-competitive renewable fuels to high-demand regions like the European Union," she said.
Meanwhile, as the Ministry of Energy of Azerbaijan reported earlier this year, the first renewable energy auction in Azerbaijan is expected to carried out for a potential solar energy project.
"Azerbaijan chose to go a different road. We technically held a very transparent selection process, as a result of which we granted a 230 MW solar power plant to Masdar, and 240 MW wind power plant to ACWA Power. We made it clear to all competing energy corporations that the main selection criteria is the tariff offer they are to make, other things being equal. And it is on the basis of this criterion that we eventually chose Masdar, ACWA Power and BP, and every other participant knew this. So there are different legitimate selection processes. Holding auctions has always been a part of the plan and we are very glad that we are getting close to realizing that option too," Elnur Soltanov, Deputy Minister of Energy of Azerbaijan told Trend.