Azerbaijan has concluded its first renewable energy auction at COP29 in Baku culminating in the procurement of a 100MW solar plant.
Universal International Holding submitted the lowest bid of $0.354/kWh.
The European Bank for Reconstruction and Development (EBRD) provided the auction, run by the Ministry of Energy, with technical support.
The solar power plant will be built in Azerbaijan’s Garadagh region.
The EBRD has been supporting the country’s decarbonisation agenda for a number of years through financing, technical assistance and policy dialogue.
The bank has advised Azerbaijan on several reform initiatives, including implementation of the enabling framework for competitive bidding.
The country’s Minister of Energy Parviz Shahbazov said: “This auction represents a major milestone in Azerbaijan’s renewable energy sector.
“The selection of Universal International Holdings underscores the increasing interest and confidence of international investors in Azerbaijan’s green energy initiatives.
“Organised with the support of the EBRD and announced during COP29, this auction highlights Azerbaijan’s dedication to international cooperation, sustainable development goals, and unlocking its green energy potential.
“This achievement will accelerate our energy transition efforts while enhancing our contribution to global climate objectives.”
The EBRD’s regional head for the Caucasus Alkis Vryenios Drakinos added: “This is a great way to wrap up the EBRD’s work at COP29 in Baku.
“Having surpassed the 1GW mark in financed green energy and following our consistent policy engagement with the authorities, our assistance with renewables auctions in Azerbaijan has today produced game changing success.
“I would like to congratulate all parties involved.”
In Azerbaijan, the EBRD co‑financed the country’s first utility-scale solar power plant in 2022 and its first utility-scale wind power plant in 2023.
The bank is also providing finance for the region’s two largest solar plants in Bilasuvar and Neftchala, with financing documents being signed at COP29.