5 December 2012: A thermal power plant modernization project in Azerbaijan financed by the European Bank for Reconstruction and Development (EBRD) will become the first to earn carbon credits through energy efficiency measures.

The AzDRES project, registered with the Clean Development Mechanism (CDM) Board, is expected to generate over 10 million carbon credits over 10 years that can be sold on carbon markets, including the European Union’s (EU) Emissions Trading Scheme (ETS). With its acceptance by the CDM Executive Board, AzDRES becomes the first power plant energy efficiency modernization project registered under the CDM and only the second CDM project in Azerbaijan.

The EBRD lent US$207 million in 2006 under its Sustainable Energy Initiative for modernizing and improving the energy efficiency of Azerbaijan’s largest power plant, AzDRES ThPP, which provides half of the country’s electric power supply. Under the project, AzDRES ThPP’s seven dual fuel, gas and heavy fuel oil units had their command and control systems updated, old and inefficient boilers and turbines rehabilitated, and water cooling systems and chimneys repaired, among other things. In addition to the loan, the EBRD also provided technical assistance through the EBRD’s fund for early transition countries. [EBRD Press Release]