Azerbaijan picks Masdar to kickstart PV market with 200MW pipeline

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Azerbaijan's Energy Ministry Parviz Shahbazov (left) and Masdar's Mohammed Jameel Al Ramahi (second right) hail the deal at the signing ceremony (Image credit: Masdar)

Masdar has been chosen to start up Azerbaijan’s solar market with a large-scale pipeline, the latest such assignment of a recent series in the Caucasus for the United Arab Emirates (UAE) player.

On Thursday, top figures in the Azerbaijani government gathered to rubberstamp an agreement that will see Masdar develop a 200MW solar PV pipeline in the republic.

Masdar’s contract was one of two signed with Azerbaijan’s prime minister Ali Asadov in attendance, as a separate deal was inked for Saudi Arabia’s ACWA Power to deploy a 240MW wind project.

The agreement will have Masdar deploy and run the 200MW solar plant some 75 kilometres southwest of capital Baku.

The UAE firm explained the plan is for the project to hit financial close by the end of this year, and start supplying Azerbaijan’s grid by 2022.

Masdar’s contract win in Azerbaijan follows the deal it signed last month to deploy a 400MW PV pipeline across the border in Armenia, whose solar market also lies at its earliest stages.

Azerbaijan’s 8GW solar opportunity

The dual tender is meant to unlock 1.4GWh-a-year of renewable electricity in Azerbaijan, a landlocked former Soviet republic home to nearly 10 million people.

The country picked solar winner Masdar and wind winner ACWA from an initial pool of nine foreign energy players, with the bids later whittled down to two through a three-stage selection process.

In a statement, Azerbaijan’s Energy Ministry explained the first stage ranked applicants based on whether they proposed prices “in accordance with the tariffs established in the country.”

Meanwhile, the Ministry added, the second stage scored the foreign bidders according to the investor guarantees, project location and grid upgrade plans each had put forward.. 

The tender is meant to boost an as-of-yet slumbering renewable sector in Azerbaijan, which is being assisted on this front by the European Bank for Reconstruction and Development (EBRD).

According to the EBRD’s estimates, the country had only six solar projects – a 28MW fleet overall – operational as of March 2019 but could host a 8GW PV market given its potential.

Read Next

December 1, 2021
Enefit Green, the renewables subsidiary of Estonian state-owned utility Eesti Energia, is looking to procure up to 500MW of solar modules in the next three years.
November 29, 2021
A round-up of the latest project news from across the world, including Masdar’s plans to develop solar in Armenia, TotalEnergies completing its largest project in France and Shikun & Binui expanding its US energy portfolio.
November 26, 2021
Renewables developer and asset owner Grasshopper Energy has signed an agreement that could support the development of up to 1GW of solar in Romania by 2030.
PV Tech Premium
November 19, 2021
In recent years the solar industry has seen some of the largest and cheapest contracts awarded in the MENA region. But with concerns over component price and availability, what can the industry expect from the solar sector in the MENA region in the medium-term?
November 9, 2021
Renewables developers Econergy and Nofar Energy have completed the acquisition of a 155MW ready-to-build solar project in Romania from real estate developer Portland Trust.
November 8, 2021
Abu Dhabi has said it will bring its renewables capacity up to 8.8GW by 2025 as it seeks to reduce emissions associated with power generation by 50% over the next decade.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal

PV TECH POWER VOLUME 29 OUT NOW—Get 35% off your first year

Solar’s 2030 blueprint