BAKU, Azerbaijan, June 5. The State Oil Company of Azerbaijan (SOCAR) anticipates the introduction of new financial instruments for Azerbaijan, Vice President of SOCAR Afgan Isayev said during today's panel discussions themed "Unlocking Sustainable Energy: Green Energy Potential in the Caspian Region" within the 29th Baku Energy Forum in Azerbaijan, Trend reports.
According to him, as a result of unforeseen geopolitical events, project owners are now forced to explore alternative routes, which unfortunately come with higher costs.
"The next problem we face on a global level is the high cost of financing. When the risk-free rate is in the range of 4.5 percent to 5.25 percent, attracting financing and stimulating the development of renewable energy projects becomes significantly more costly.
We express our immense gratitude to international financial organizations and multilateral institutions for their support in our endeavors, especially regarding project financing and risk mitigation efforts. I have faith that the global financial institutions are concentrating on creating credit instruments in local currencies, and we are eagerly awaiting new tools, especially for Azerbaijan," added Isayev.
To note, over 600 delegates are participating in the forum, which began on June 5, representing a diverse range of countries including Australia, Austria, Belarus, Belgium, Bulgaria, China, the Czech Republic, Finland, France, Georgia, Hungary, India, Israel, Italy, Japan, Kazakhstan, Latvia, Monaco, the Netherlands, Norway, UAE, Qatar, Romania, Russia, Saudi Arabia, Slovenia, Sweden, Switzerland, Ukraine, the UK, the US, and Uzbekistan. This year's forum boasts a record number of speakers, totaling 81.
The Forum's agenda will address energy issues of significance for Azerbaijan and the broader Caspian region, focusing primarily on considerations and financing related to energy security, energy transition, and green energy projects.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel