ADB: Competitive bidding is useful model for Azerbaijan's renewable energy

Ali Malik, senior investment specialist at the Asian Development Bank (ADB), highlighted the benefits of competitive bidding during the "Green Energy Week 2025: Azerbaijan and Central Asia" event in Baku, Report informs.

"Competitive bidding determines the real price and ensures the lowest cost for energy projects through competition. We have seen this not only in Uzbekistan but also in Vietnam, Thailand, and the Central Asian countries. Uzbekistan is a prime example. Therefore, we recommend that Azerbaijan adopt a similar approach," Malik said.

He also noted that ADB recently signed a mandate to advise Azerbaijan's government on a wastewater treatment project at the Govsan aeration station. ADB will help structure the deal and guide the government on tender procedures and attracting private sector bids.

Malik emphasized that involving the International Finance Corporation (IFC) in such deals adds credibility and helps attract international investors, especially in new sectors related to decarbonization.

"While government-to-government contracts are useful initially, transitioning to competitive mechanisms is critical as the market develops. We've seen this in Kazakhstan and Uzbekistan, and similarly in Southeast Asia. This approach should shape Azerbaijan's projects, attracting global investments and leading developers," he concluded.