BAKU, Azerbaijan, November 23. The Asian Infrastructure Investment Bank (AIIB) has announced a major solar investment in Azerbaijan, marking a significant step in its climate action strategy. Seleha Lockwood, Senior Climate Strategy and Policy Specialist at AIIB, discussed the partnership during an exclusive interview with Trend on the sidelines of COP29.
AIIB's broader climate strategy, Lockwood explained, focuses on engaging with clients and fostering strategic partnerships. "We released a Climate Action plan last year, which emphasizes working closely with our clients and building meaningful partnerships. This particular investment in Azerbaijan exemplifies that approach, as we are collaborating with other multilateral development banks (MDBs) and the country itself to support their energy priorities," said Lockwood.
The investment, totaling $160 million, will fund the development of two solar PV power plants: the 315 MWAC Neftchala Solar PV Power Plant and the 445 MWAC Bilasuvar Solar PV Power Plant. The project is being developed in partnership with Abu Dhabi Future Energy Company PJSC (Masdar), and will significantly contribute to Azerbaijan's renewable energy capacity.
"This project is a transformative investment that will significantly change the energy mix in Azerbaijan," Lockwood noted. "We are excited to be part of this initiative, which holds substantial strategic importance for the country’s future energy landscape".
The project is co-financed by the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD), with SOCAR Green joining Masdar as a local partner. Lockwood emphasized that this collaboration reflects AIIB's commitment to fostering regional cooperation and supporting countries in their climate goals. "The partnership with multiple MDBs and local players underscores the importance of collaboration in tackling global challenges like climate change," she said.
The solar investment is aligned with AIIB’s broader strategy to prioritize green infrastructure, in line with its commitment to the Paris Agreement. "Our strategy prioritizes green infrastructure and aligns with the goals of the Paris Agreement," Lockwood stated. "Since July 1, 2023, all of our project investments have been aligned with Paris goals, and this investment is no exception".
AIIB’s commitment to the project is already evident, as its investment operations team has been actively engaged on the ground in Azerbaijan since the first week of the initiative. "We are already on the ground, engaging with counterparts in Azerbaijan, ensuring that the project progresses smoothly," Lockwood added.