UAE-state owned renewables developer Masdar and Azerbaijani state-oil company SOCAR’s subsidiary, SOCAR Green, have secured US$480 million in a solar PV portfolio in Azerbaijan.
The financing covers two solar PV plants, which include the 445MW Bilasuvar PV plant and the 315MW Neftchala solar project.
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Both projects started construction earlier this year and are expected to be commissioned by 2027. They are part of Masdar’s first phase of an up to 10GW renewables development portfolio in Azerbaijan.
A trio of development banks – The European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB) and the Asian Infrastructure and Investment Bank (AIIB) – are financing the two solar projects, which are expected to cost over US$600 million. Each development bank will provide US$160 million.
The agreements were signed on the sidelines of the ongoing Conference of the Parties (COP29) held in Baku, Azerbaijan.
During the opening ceremony of COP29, Azerbaijan’s president, Ilham Aliyev, announced that the country aimed to build 6GW of renewables – solar PV, wind and hydropower – by 2030.
This is not the first time the EBRD and ADB have financed a Masdar solar PV project in Azerbaijan. In 2022, Masdar achieved financial close on the 230MW Garadagh solar PV project in Azerbaijan, its first solar plant, at the time. The project reached commercial operations in November 2023. On the other hand, this is the first private-sector renewable energy initiative in Azerbaijan for the AIIB.
Mohamed Jameel Al Ramahi, CEO at Masdar, said: “We are very pleased to sign financing agreements for these two major solar projects in Azerbaijan, so soon after completing the largest solar plant in the country in Garadagh last year. Azerbaijan is a key strategic market for us, and we are committed to helping the country achieve its ambitious clean energy targets.”
Moreover, according to the EBRD, it has financed over 1.2GW of renewable energy capacity in Azerbaijan.
