Azerbaijan Initiates Masdar's 1GW Solar And Wind Energy Projects

Abu Dhabi Future Energy Company PJSC (Masdar) and SOCAR, the State Oil Company of Azerbaijan, have initiated three significant solar and wind projects in Azerbaijan, totalling 1 gigawatt (GW) in capacity. The groundbreaking event coincided with the opening ceremony of Baku Energy Week, underscoring Masdar’s long-term commitment to Azerbaijan as a strategic partner.

The ceremony was attended by Ilham Aliyev, President of Azerbaijan, and Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President. Other notable attendees included Parviz Shahbazov, Azerbaijan's Minister of Energy; Mikayil Jabbarov, Azerbaijan's Minister of Economy and Chairman of the Supervisory Board of SOCAR; and Masdar's CEO, Mohamed Jameel Al Ramahi.

The three projects include the 445MW Bilasuvar Solar PV Project, the 315MW Neftchala Solar PV Project, and the 240MW Absheron-Garadagh Onshore Wind Project. Investment agreements for these projects were finalised in October 2023, followed by the signing of Power Purchase Agreements, Transmission Connection Agreements, and Land Lease Agreements.

On the sidelines of Baku Energy Week, Masdar and SOCAR also signed a Shareholder Agreement for these projects. Dr. Al Jaber commented on the partnership: "We are proud to partner with Azerbaijan on this significant expansion of its renewable energy capacity and to support Azerbaijan’s journey toward energy diversification."

Statements from Key Figures

Parviz Shahbazov highlighted the importance of these projects: "Laying the foundation of 3 stations with a capacity of 1 GW is not only a first in green energy for Azerbaijan but also a bright indicator of our solidarity and commitment to the energy transition." He noted that these plants would contribute to sustainable development by generating 2.3 billion kWh annually, saving over 500 million cubic meters of natural gas, and preventing more than 1 million tons of carbon emissions.

Mikayil Jabbarov emphasised the significance of these initiatives: "Today's groundbreaking represents a significant milestone in Azerbaijan's energy journey. These initiatives underscore our commitment to diversify our energy sources and advance our sustainable development goals."

Masdar's Strategic Vision

Masdar CEO Mohamed Jameel Al Ramahi stated: "Azerbaijan is a key strategic market for Masdar. With this groundbreaking of 1GW wind and solar projects, we take a significant step forward in realising our ambitious plan to develop up to 10GW of clean energy by 2030 in Azerbaijan." He also mentioned that following the inauguration of the 230MW Garadagh solar plant last year, Masdar is accelerating the country’s clean energy vision ahead of COP29.

Background on Masdar

Established in 2006, Masdar aims for a renewable energy portfolio capacity of 100GW by 2030. This target supports The UAE Consensus goal to triple global renewables capacity by the end of this decade. Additionally, Masdar aims to be a leading producer of green hydrogen by the same year.

The groundbreaking follows Masdar’s completion of the 230MW Garadagh solar plant in October 2023. This project marked Azerbaijan’s first foreign investment-based independent solar power project and is currently the largest operational plant in the region.

With inputs from WAM