On October 15, Alkis Vryenios Drakinos, the EBRD Regional Director for the Caucasus, discussed the Bank’s priorities in Azerbaijan, focusing on renewable energy, transport connectivity, the national hydrogen strategy, and green corridors. Drakinos outlined that over the next five years, the EBRD will prioritize economic diversification, advancing the green transition, and enhancing Azerbaijan’s role as a hub for regional connectivity. He noted that support for the private sector would continue through programs like the Star Venture Programme and targeted financing for SMEs, larger corporates, and partner banks, aiming to boost competitiveness and access to finance.

On the green agenda, he highlighted that the EBRD had been involved in every utility-scale renewable energy project in Azerbaijan to date, collectively producing over 1 gigawatt of clean energy. Regarding connectivity, Drakinos emphasized Azerbaijan’s central location along the Middle Corridor and the potential for faster, greener, and more reliable trade and transport links under the US-backed peace framework. Drakinos explained the EBRD’s role in developing green corridors, stating that the Bank can finance or co-finance major transport upgrades, integrate donor funds for sustainable components, and conduct feasibility studies to de-risk projects. He cited a study with Georgian and Azerbaijan Railways aimed at shifting trucks onto rail between Batumi and Baku, reducing congestion and emissions. Key criteria for supporting projects include economic viability, measurable green impact, and strong stakeholder commitment.

Regarding Azerbaijan’s national hydrogen strategy, Drakinos noted the EBRD’s support in preparing the strategy presented at COP29 and emphasized that the next steps involve establishing regulation, piloting projects powered by renewables, and building the necessary infrastructure for industry and exports. The Bank is prepared to invest in pilot projects, integrate hydrogen into wider energy systems, and support regulatory development, provided projects are economically viable and environmentally beneficial.

On port infrastructure, Drakinos confirmed that the EBRD is monitoring the second phase of the Baku International Sea Port expansion and could participate if conditions are suitable. The Bank prioritizes financially sound, environmentally sustainable projects that strengthen regional connectivity and considers end-to-end infrastructure investments, including Aktau Port on the Caspian Sea. Regarding cross-border initiatives like the TRIPP, Drakinos welcomed efforts to enhance regional connectivity and peace, highlighting potential economic benefits for the Middle Corridor and the Caucasus. He noted that the EBRD can provide long-term financing, mobilize donor funds, and offer technical support and policy dialogue to facilitate these projects. Finally, on renewable energy auctions, Drakinos stated that the EBRD had supported Azerbaijan’s first competitive auction at COP29, which promoted transparency, competition, and cost reduction. The Bank expects future auctions to attract international investment, expand wind and solar capacity, and deliver clean energy at competitive prices, with continued technical and financial support from the EBRD.