Azerbaijan Completes First RE Auction, Secures 100 MW Solar Plant

Azerbaijan completed its first renewable energy auction, selecting Universal International Holding Ltd. to develop a 100 MW solar power plant in the Garadagh region.

The announcement was made during the United Nations Climate Change Conference (COP29) in Baku, showcasing the nation’s progress in advancing its green energy ambitions.

The competitive bidding process, overseen by Azerbaijan’s Ministry of Energy with technical assistance from the European Bank for Reconstruction and Development (EBRD), resulted in a highly competitive tariff of USD 3.540 cents per kWh. Universal International Holding Ltd. is now set to proceed with commissioning the plant, a project expected to accelerate Azerbaijan’s transition to renewable energy sources.

Parviz Shahbazov, Azerbaijan’s Minister of Energy, hailed the auction as a pivotal milestone in the country’s renewable energy journey. He noted that the successful bidding process underscores growing international investor confidence in Azerbaijan’s green energy initiatives. “This achievement will enhance our contribution to global climate objectives and strengthen our role in international cooperation on sustainable development,” he added.

The EBRD, a longstanding partner in Azerbaijan’s decarbonisation efforts, played a key role by providing financing, technical assistance, and policy support. Alkis Vryenios Drakinos, the EBRD’s Regional Head for the Caucasus, described the auction’s outcome as a landmark success. “Having surpassed one gigawatt of financed green energy and consistently engaged in policy dialogue, this milestone underscores our commitment to advancing renewable energy in Azerbaijan,” he said.

The EBRD has been instrumental in developing Azerbaijan’s green energy landscape, co-financing the nation’s first utility-scale solar plant in 2022 and its first utility-scale wind plant in 2023. The Bank is also financing two of the region’s largest solar power projects, in Bilasuvar and Neftchala, with agreements formalised during COP29.

In addition to financing, the EBRD continues to support Azerbaijan through policy dialogue focused on grid improvements, the establishment of a low-carbon pathway for the energy sector, and the development of a national hydrogen strategy. These efforts aim to attract further private climate investments and foster sustainable energy growth.

The EBRD’s Renewable Energy Programme is active in 18 countries and has supported auctions totaling nearly 5 GW across regions such as Albania, Egypt, Kazakhstan, and Uzbekistan. With 3.5 GW of additional auctions planned in Azerbaijan and neighboring countries, the initiative is poised to further advance the global renewable energy agenda.

This auction’s success highlights Azerbaijan’s dedication to diversifying its energy mix and aligning with global sustainability objectives, setting the stage for accelerated renewable energy development in the region.