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World Bank Approves Azerbaijan’s AZURE Renewable Energy Expansion Project

The World Bank has approved the Azerbaijan Renewable Energy Scale-Up Project (AZURE), aimed at strengthening the country’s power transmission network, diversifying its energy mix, and ensuring a more reliable and sustainable electricity supply, Azernews reports.

The project will be supported by a $173.5 million loan from the International Bank for Reconstruction and Development (IBRD) to modernize and expand Azerbaijan’s energy infrastructure. This will create a favorable environment for private sector investments in Azerbaijan’s renewable energy potential, particularly onshore wind power.

At a time when Azerbaijan is considering expanding electricity exports, the project is expected to unlock $384 million in private investment in its initial phase, paving the way for further investments in renewables.

Key infrastructure upgrades under AZURE:

• Connecting the 240 MW Absheron-Garadagh Wind Power Plant to the transmission network.

• Expanding and upgrading the 330/500 kV high-voltage grid to ensure the safe and stable transmission of up to 1 GW of privately generated renewable energy.

• Strengthening grid stability to facilitate the integration of 1.8 GW of renewable energy through private investment.

Stephanie Stallmeister, World Bank Country Manager for Azerbaijan, stated:

“This project will provide reliable, affordable, and sustainable electricity for people and businesses in Azerbaijan. By strengthening the power grid, we support Azerbaijan’s long-term vision for energy security, sustainable growth, and new opportunities.”

Stephanie Gil, World Bank Energy Practice Manager for Europe and Central Asia, highlighted AZURE’s inclusion in the ECARES (Europe and Central Asia Renewable Energy Scale-Up) program, which connects governments, financial institutions, and private sector stakeholders to share best practices and investment strategies.

“This initiative accelerates the development of scalable, private sector-led energy solutions,” she noted.

The project will link high-potential renewable energy areas with demand centers, enhance transmission capacity, and improve grid reliability. This, in turn, will attract private investment, support economic growth, and create jobs.

AZURE marks a crucial first step in Azerbaijan’s vision of developing a “Green Energy Corridor”, boosting renewable energy trade in the region.