The project, supported by the Government of Finland, developed an action plan to boost renewable energy development and design pilot projects for the most appropriate renewable energy options.
Philip Chang, ADB's Country Economist in Azerbaijan, said the Asian Development Bank allocated $22 billion for renewable energy projects in 31 countries. He said the preliminary research has been a success in Azerbaijan.
The energy sector plays a central role in Azerbaijan's economy, contributing about one third of GDP. Although Azerbaijan has been successful in engaging the private sector in the development and export of oil and gas, the domestic energy sector is in urgent need of investment to upgrade aging infrastructure and expand energy supply, especially in the rural and remote areas. Some regions of the country can barely meet basic energy needs, while unreliable electricity supply is constraining economic growth and limiting job opportunities.
"Renewable energy sources are a key to reducing poverty further in Azerbaijan, as it drives production, increases incomes, and creates new jobs. Developing alternative and renewable energy sources, mainly small hydropower and wind power, will be a competitive and environmentally friendly option to meet power shortages," says Philip Chang.
The Government of Finland is contributing a grant of $200,000 toward the project's total cost, while ADB is providing $500,000. The Government will provide $200,000 through in-kind contribution. The Ministry of Industry and Energy is the executing agency for the project, which is to be carried out over 10 months.
