BAKU, Azerbaijan, May 30. The European Bank for Reconstruction and Development (EBRD) has been supporting Azerbaijan's Ministry of Energy in developing a robust legal and regulatory framework to ensure success of renewable energy auctions launch, Alkis Vryenios Drakinos, Director, Regional Head of the Caucasus for the EBRD, told Trend.
"We support auctions because through competition and transparent procedures beneficiary countries get the best possible prices from international quality bidders. To ensure the success and effectiveness of these auctions, the EBRD has been supporting the Ministry of Energy in developing a robust legal and regulatory framework. This includes contributions to the new Renewable Energy Law, which provides the necessary foundation for competitive bidding processes. Our experience in supporting similar auctions in countries like Uzbekistan, Albania, and Serbia has shown that such frameworks are very successful in mobilizing private sector financing and high-quality project delivery," he said.
According to Drakinos, the launch of the first renewable energy auction for solar power plant in Garadagh represents a significant milestone in the country's journey towards decarbonization and sustainable energy development, "a game-changer for Azerbaijan’s green energy agenda".
"The primary objective of these auctions is to attract private investment in utility-scale renewable energy projects, increasing the renewable energy share of Azerbaijan’s installed electricity generation capacity. By helping foster a competitive and transparent procurement process, we aim to help ensure that the best projects are selected, driving both innovation and efficiency in the sector," he elaborated.
The EBRD rep also spoke about the outcomes of such auctions. "They are designed to diversify Azerbaijan’s energy mix, reducing reliance on fossil fuels, and helping the country meet its international climate commitments. This is particularly relevant now as the country prepares to host the COP29 climate conference in Baku later this year. Investments in renewables will also stimulate economic growth and diversification by creating jobs and encouraging technological advancements within the energy sector".
He concluded by saying that the EBRD remains dedicated to supporting Azerbaijan’s renewable energy ambitions and looks forward to continuing cooperation in this journey.
Meanwhile, on April 23, Azerbaijan announced its first EBRD-supported renewable energy auction for a 100 MW solar power plant project in Garadagh. The public call for applications is accessible on the Ministry’s website. Interested parties are invited to submit their Statements of Qualification by June 14.