BAKU, March 28 (Xinhua) -- The World Bank has approved a $173.5 million loan to Azerbaijan to modernize its power grid and expand renewable energy capacity, the lender announced on Friday.

The Azerbaijan Scaling-Up Renewable Energy Project (AZURE) aims to enhance the country's power transmission network, attract private investment in renewables, and diversify its energy mix, the World Bank said in a statement.

The initiative is expected to unlock $384 million in private investment, primarily in onshore wind energy, and bolster Azerbaijan's efforts to expand energy exports.

"This project will enable the delivery of reliable, affordable, and sustainable electricity that people and businesses in Azerbaijan can depend on," said Stefanie Stallmeister, World Bank Country Manager for Azerbaijan.

AZURE will support upgrades to key transmission lines and substations, linking the 240-Megawatt Absheron-Garadagh Wind Power Plant to the grid and reinforcing high-voltage infrastructure to integrate up to 1.8 Gigawatts of renewable electricity through private sector participation.

The initiative is part of the World Bank's broader Europe and Central Asia Renewable Energy Scale-up (ECARES) program, which promotes investment and regulatory solutions in the sector.

Azerbaijan, a major oil and gas producer, is working to diversify its energy sources and enhance grid stability as it advances its plan for a green energy corridor to facilitate regional renewable energy trade. The country has set ambitious targets to generate 30% of its electricity from renewables by 2030, leveraging its vast solar and wind energy potential.

As part of its green energy strategy, Azerbaijan is also a key participant in the Black Sea Energy project, an initiative to lay a high-voltage subsea cable that will transmit renewable electricity from Azerbaijan to Europe via Georgia, Romania and Hungary. The project aims to enhance energy security and supply clean electricity to European markets. Enditem

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