WB awaiting Azerbaijani government's decision on new energy projects - EXCLUSIVE

The World Bank (WB) is awaiting the Azerbaijani government's decision on future areas of cooperation, World Bank Senior Energy Specialist Florian Kitt said in Baku at the Azerbaijan & Central Asia Green Energy Week 2025, Report informs.

"We currently have a major project we are developing jointly with Azerbaijan (AZURE). We are providing technical assistance within this project. We are actively collaborating with the government on areas it considers priority for the country's development. Next steps will depend on the government's decisions regarding investment opportunities and areas where the World Bank can be helpful," Kitt noted.

According to him, key decisions will be made at the level of Energy Minister Parviz Shahbazov, the Cabinet of Ministers, and, in particular, the Ministry of Finance, which determines budget priorities.

Kitt recalled that about two years ago, the World Bank published an "offshore wind energy roadmap" for Azerbaijan.

"The document demonstrated the country's enormous potential for offshore wind energy, but also identified a number of challenges. First and foremost, these are logistical issues: offshore wind turbines are large and require specialized delivery solutions. It is also necessary to begin practical wind speed measurements-for now, we only have theoretical data for the Caspian Sea. The same applies to solar energy: for example, in Gobustan, the sun shines frequently, but it is important to measure exactly how much," the expert said.

He noted that Masdar, a company from the United Arab Emirates, has completed work on measuring wind speeds onshore, and similar studies should be conducted offshore. "Private developers can undertake this, and we are awaiting the results. While I represent the World Bank's public sector, we have colleagues working with the private sector and interacting directly with companies," Kitt explained.

According to him, the World Bank is in constant dialogue with the Azerbaijani government and regularly discusses the progress of the AZURE project.

"We are conducting technical dialogue with the relevant bodies-led by the Minister [of Energy], as well as with organizations such as AREA, SOCAR Green, SOCAR, Azerishig, AzerEnergy, and others," concluded Kitt.

In March 2025, the World Bank approved a $173.5 million loan for the Azerbaijan Renewable Energy (AZURE) Project. As part of the project, the groundbreaking ceremony for the 445 MW Bilasuvar SPP and the 315 MW Neftchala SPP took place during the Baku Energy Week on June 4, 2024. The plants are scheduled to be commissioned in 2027.

Once completed, these 760 MW solar power plants, valued at $670 million, are expected to generate approximately 1.7 billion kilowatt-hours of clean electricity annually. Their commissioning will also reduce carbon dioxide emissions by approximately 830 million tons per year and lead to annual savings of 380 million cubic meters of natural gas.