On July 1, the Azerbaijani government and the World Bank signed a loan agreement to expand the use of renewable energy sources in Azerbaijan.

The signing ceremony included two key documents: a $173.5 million loan agreement between AzerEnergy OJSC and the International Bank for Reconstruction and Development (IBRD), and a corresponding guarantee agreement between the Republic of Azerbaijan and the IBRD. The loan was signed by AzerEnergy Chairman Baba Rzayev and World Bank Country Manager for Azerbaijan Stefanie Stallmeister. Minister of Finance Sahil Babayev signed the guarantee agreement on behalf of the Azerbaijani government.

The loan has a 15-year term with a 5-year grace period and is scheduled for repayment by 2039. It will finance the expansion and strengthening of the country's transmission infrastructure to safely integrate new renewable energy sources into the national grid. The Azerbaijani government’s contribution totals $31.2 million, primarily to cover VAT and customs duties.

The four-year project aims to enhance the operational efficiency of AzerEnergy’s system. The financing will support the construction of four new 500 kV and 330 kV transmission lines spanning 341 kilometers, as well as the procurement of critical equipment for the Navahi substation.

At the ceremony, Stefanie Stallmeister stated that upon completion, the project will enable Azerbaijan to integrate 1.8 gigawatts of renewable energy into its grid. Highlighting the country's commitments during and after COP29, she noted Azerbaijan's growing status as a "green energy country." Stallmeister expressed hope that this project would attract further private sector investment and strengthen Azerbaijan’s renewable energy sector, reaffirming the World Bank's support for the nation's sustainable development.