Azerbaijan joins the family of sustainable energy financing facilities

The EBRD launches ‘Energocredit’ in Azerbaijan as part of the Caucasus Energy Efficiency Programme – the $125 million credit line facility available to local participating financial institutions (PFIs) to boost the use of renewable energy and energy efficient technologies by the small and medium-sized enterprises (SMEs), local businesses and households.

The main objective of Energocredit is to help local financial institutions promote sustainable energy investments to clients and demonstrate the technical and financial benefits of such investments.

Three local banks, DemirBank, Muğanbank and AccessBank, have already benefited from the programme, while Unibank has also shown interest in Energocredit.

The EBRD has engaged a team of international consultants to provide support to local PFIs, firms and households. This support will enable companies and homeowners to make the transition from using inefficient equipment and technologies towards better-performing, more energy-efficient facilities, which will gradually reduce their energy bills over time.

The facility is also supported by donor funding from the European Union Neighbourhood Investment Facility, the Austrian Federal Ministry of Finance as well as by the EBRD Shareholder Special Fund. This funding will be used for advisory package and investment incentives to eligible successful projects.

This way, Azerbaijan joins the SEFF family, increasing the country’s chances for a more competitive and sustainable economy and community.