ADB to Integrate Renewables into Azerbaijan’s Power Grid

The Asian Development Bank (ADB) has approved the "Accelerating Deployment of Smart Energy Systems and Grid Integration Infrastructure (Subproject 2)," with the first phase covering Azerbaijan and Thailand.

The project's total budget is $1.5 million. Financing will be provided by the Smart Energy Innovation Fund, The Caspian Post reports, citing local media.

Subproject 2 will support Azerbaijan and Thailand and is expected to be extended based on the needs and ongoing discussions with other ADB DMCs, including, but not limited to, Kazakhstan (electric mobility and charging infrastructure), the Kyrgyz Republic (data centers), and Thailand (sustainable and resilient power supply for data centers).

The subproject focuses on investments in smart energy systems and grid integration infrastructure for renewable energy and promotes the introduction of innovative and advanced technologies, and digital solutions in the beneficiary DMCs.

The TA cluster subproject will have the following outcome: solutions with innovative smart grid, renewable energy integration, or cross-sectoral integrated clean energy components adopted.

The subproject includes the preparation of CPS-level assessment, sector-specific or technology-specific assessment, or private sector development diagnostics. Project identification and the preparation of preliminary and full feasibility studies for both sovereign and non-sovereign initiatives are planned. Furthermore, technology readiness will be enhanced through knowledge transfer and technical training, according to ADB.

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 unites 69 shareholder countries, 50 of which are countries in the Asia-Pacific region.