ESG Post

In Brief

AIIB commits $160m to Azerbaijan’s renewable energy project

At COP29, the Asian Infrastructure Investment Bank (AIIB) announced a $160 million financing agreement for its inaugural private-sector renewable energy project in Azerbaijan. The initiative aims to bolster green infrastructure across the Caucasus region.

In collaboration with Abu Dhabi Future Energy Company PJSC (Masdar), the funding will support the development, construction, and operation of two solar photovoltaic (PV) power plants: the 315 MWAC Banka Solar PV Power Plant and the 445 MWAC Bilasuvar Solar PV Power Plant. SOCAR Green, nominated by the Azerbaijani government, will act as Masdar’s local partner. Co-financiers include the Asian Development Bank and the European Bank for Reconstruction and Development.

Once operational, the solar plants are expected to provide clean and affordable electricity, cut greenhouse gas emissions by approximately 757,000 metric tonnes of CO₂-equivalent annually, and generate significant local employment opportunities. “With this project, AIIB is committed to supporting Azerbaijan’s ambitious energy transition, leveraging solar resources to create sustainable energy infrastructure and assist the country in achieving its climate goals,” said Najeeb Haider, AIIB’s Director General for Project and Corporate Finance Clients, Global.