Masdar And SOCAR Green Finalise Financing For 760MW Solar Projects In Azerbaijan

Abu Dhabi Future Energy Company (Masdar) and SOCAR Green, a subsidiary of SOCAR focused on sustainable initiatives, have secured financial backing for two solar projects in Azerbaijan. The Bilasuvar project will generate 445MW, while the Neftchala project will produce 315MW. These ventures are supported by the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB), with a total investment exceeding USD 600 million.

The agreements were formalised during COP29 in Baku. Present at the signing were Parviz Shahbazov, Azerbaijan's Minister of Energy; Abdulaziz AlObaidli, Masdar's COO; Afgan Isayev, SOCAR's Vice President; and Harry Boyd-Carpenter from EBRD. Signing representatives included Abdulla Zayed from Masdar, Elmir Musayev from SOCAR Green, Aida Sitdikova from EBRD, James Lok from AIIB, and Mayank Choudhary from ADB.

Construction for these solar parks began in June 2024 during Baku Energy Week. Completion is expected by early 2027. Dr. Sultan bin Ahmed Al Jaber, Chairman of Masdar and COP28 President, emphasised the importance of partnerships in unlocking climate finance and expanding clean energy capacity. He highlighted the UAE's commitment to tripling renewable energy capacity by 2030 as part of its ambitious goals.

Parviz Shahbazov remarked on the significance of reaching financial closure for these projects in advancing Azerbaijan's renewable energy objectives. He noted that this agreement underscores investor confidence in Azerbaijan and will significantly aid in reducing carbon emissions as part of their green energy transition.

Strategic Market Focus

Masdar CEO Mohamed Jameel Al Ramahi expressed satisfaction with securing financing for these projects shortly after completing Azerbaijan's largest solar plant in Garadagh last year. He reiterated Azerbaijan's strategic importance to Masdar’s clean energy ambitions.

Rovshan Najaf, President of SOCAR, acknowledged the historic milestone achieved through their partnership with Masdar. He highlighted that these projects represent significant progress towards diversifying energy sources and advancing sustainable development goals.

Masdar remains committed to supporting Azerbaijan’s energy transition efforts. It has signed agreements to develop various renewable projects with a combined capacity of 10GW. Their first project in Azerbaijan was the 230MW Garadagh solar plant, inaugurated last October.

With inputs from WAM