ADB to help Azerbaijan prepare projects for development of smart energy, digital infrastructure

The Asian Development Bank (ADB) has approved technical assistance under the regional project "Catalyzing Growth and Emerging Areas in Asia and the Pacific," which covers four countries, including Azerbaijan, Report informs referring to the ADB.

The project aims to support several key sectors - Agriculture, natural resources and rural development (Agricultural policy, institutional and capacity development), Energy (Electricity transmission and distribution, Energy efficiency and conservation, Energy sector development and institutional reform), Information and communication technology (ICT industries and ICT-enabled services - ICT infrastructure), Water and other urban infrastructure and services (Urban policy, institutional and capacity development).

Funding of $4 million will be provided through the Smart Energy Innovation Fund.

The regional technical assistance (TA) cluster aims to support the transformation of energy systems in selected developing member countries (DMCs) of the Asian Development Bank (ADB), specifically Azerbaijan, Mongolia, the Philippines, and Thailand, with potential expansion to India, Kazakhstan, Kiribati, the Kyrgyz Republic, Papua New Guinea, Tajikistan, and Tuvalu.

Located across Asia and the Pacific, the TA will advance reliable, affordable, and low-carbon energy by identifying, preparing, and implementing cross-sectoral, integrated, and smart energy solutions.

Major activities include project identification and preparation for both sovereign and nonsovereign initiatives, and knowledge dissemination.

The TA will focus on clean and innovative power generation technologies, smart grids and energy management systems, grid integration infrastructure including energy storage, and multisector services such as electric mobility and vehicle-to-grid integration, while also exploring innovative business models and financing mechanisms to enable private sector participation and climate resilience.

CPS-level assessment, sector-specific or technology-specific assessment, or private sector development diagnostics prepared, Identification, (pre-) feasibility assessments, and preparation of sovereign projects conducted, Identification and (pre)-feasibility assessments of nonsovereign project opportunities conducted, Technology readiness enhanced through knowledge transfer and technical training are planned as part of the project.

Azerbaijan has been a member of ADB since 1999. During this period, the bank has invested approximately $5.6 billion in the country, including $4.4 billion in the public sector and $1.2 billion in the private sector. The largest financing areas are transport ($1.5 billion) and energy ($1.7 billion).

As part of the new partnership strategy, ADB is prepared to invest up to $2.5 billion in Azerbaijan.

ADB was established in 1966 and is headquartered in Manila. The bank brings together 69 member countries, 50 of which are from the Asia-Pacific region.