International Finance Corporation: Azerbaijan Needs Pilot Offshore Energy Project

Azerbaijan's top priority is attracting investment in renewable energy and developing grid infrastructure, said Vyacheslav Hordiyenko, an investment specialist at the International Finance Corporation (IFC), during the Azerbaijan & Central Asia Green Energy Week 2025 in Baku.

He noted that Azerbaijan already has 1.7 gigawatts of capacity allocated to projects through 2027, The Caspian Post reports citing local media.

"It's encouraging that a large-scale renewable energy investment program is being implemented in close collaboration with the World Bank Group. Beyond grid issues, it's clear to us that once the capacity issue is resolved, the natural challenge is to ensure revenue predictability. Public-private partnership agreements (PPAs) play a key role here - it's important to have a reliable electricity buyer. Furthermore, the agreement's term should, if possible, coincide with the loan repayment period, which significantly increases investor interest. Regarding offshore projects, the addition of 200 megawatts of capacity is welcome. However, it's important to emphasize that this is not a pilot project. Despite the complexity of the topic, it would be useful to launch a pilot project to serve as a benchmark for further implementation. Otherwise, the impression may be created that these opportunities are too large for a single country," the IFC specialist noted.