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Ministry of Energy and EBRD have signed an agreement on power sector development

Ministry of Energy and the European Bank for Reconstruction and Development (EBRD) have signed a Memorandum of Understanding on technical support for the development of the power sector in online format.

The memorandum, aimed at low-carbon power development, will foster the renewable energy advancement, improve the energy efficiency, reduce methane emissions, as well as provides for the phased research cooperation and application of innovative technologies, including "green hydrogen". In addition, the "Low-carbon solutions in Azerbaijan's energy sector" technical support project will be implemented at the initial stage of this cooperation. The technical support envisages designing a road map with recommendations on the relevant policy and decarbonization technology for the energy sector.

Energy Minister Parviz Shahbazov said: "Following the new presidential policy, the country's energy sector is being transformed into the renewable energy and efficiency model. This document, signed with the EBRD, is important for the development of the power sector in accordance with moderm global challenges on energy and environmental. Our joint efforts will contribute to Azerbaijan's transformation into the "country of clean environment and green growth", as well as the implementation of large-scale work to reduce greenhouse gas emissions by 40 percent by 2050 and create a net zero emission zone in the liberated territories."

Managing Director of the EBRD Sustainable Infrastructure Group Nandita Parshad noted: "This memorandum would facilitate further cooperation between Azerbaijan and the EBRD in developing low-carbon power solutions, where renewable energy sources would play a key role. We're pleased to support Azerbaijan on its way to reduce greenhouse gas emissions in the country and replace gas consumption with affordable wind and solar energy in line with the Paris Climate Agreement."

It should be noted that there is a long-term cooperation between the Ministry and the Bank in the field of supporting the activities of the Energy Regulatory Agency, holding auctions on renewable energy sources and creating a regulatory and legal framework for small-scale renewable energy projects.