Azerbaijan’s Energy Ministry Signs Offshore Wind MoU with IFC

Azerbaijan’s Ministry of Energy has signed a Memorandum of Understanding (MOU) with the International Finance Corporation (IFC) to cooperate on offshore wind development.

The aim of the cooperation is to assess the potential of offshore wind in Azerbaijan and the development of a roadmap, and later, tender management related to relevant projects, the definition of partnerships with the private sector, and the implementation of auxiliary investments.

The work stipulated by the MOU will be implemented within the IFC Offshore Wind Development Program, funded by the World Bank’s Energy Sector Management Assistance Program (ESMAP).

“Renewable Energy has been determined by the Head of State Ilham Aliyev as one of the significant priorities of Azerbaijan’s socio-economic and diversified development course, as well as achieving a clean environment by 2030,” Minister of Energy Parviz Shahbazov said.

“It is necessary to use the offshore wind energy potential to ensure that renewable energy has a significant position in production and consumption. The rich energy resources of the Caspian Sea are an important source for the development of not only the hydrocarbon industry but also the green energy sector.”

According to Wiebke Schloemer, IFC Director for Europe and Central Asia, one of IFC’s strategic priorities in Azerbaijan is to support the country’s move to a new private sector-led growth model.

The corporation believes that by helping Azerbaijan, which is rich in oil & gas resources, explore and develop offshore wind private sector participation can be increased.

Preliminary analysis provided by ESMAP states that the technical potential of offshore wind energy in Azerbaijan is estimated at a total of 157 GW – 35 GW for fixed-bottom projects and 122 GW for floating wind.