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Green technology

Japan International Cooperation Agency Signs Loan Agreement for Azerbaijan's First Solar PV Plant Project

Strategic Insights

— 2 min read

The Japan International Cooperation Agency (JICA) has signed a project finance loan agreement with "Masdar Azerbaijan Energy" Limited Liability Company, which has been implementing the Solar PV Plant Project in the Republic of Azerbaijan. This is the first project in Azerbaijan since the resumption of Private Sector Investment and Finance and is co-financed by the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), and the Abu Dhabi Fund for Development (ADFD). The project aims to contribute to Azerbaijan's goals of increasing the share of renewable energy to 30% by 2030 and adhering to the Paris Agreement.

Key Takeaways:

  • The loan agreement is worth a significant amount, but the exact amount is not specified in the provided text.
  • The project is the first large-scale solar power project in Azerbaijan, with a capacity of 230MW.
  • The borrower, "Masdar Azerbaijan Energy" Limited Liability Company, is sponsored by Abu Dhabi Future Energy Company PJSC (Masdar), which has extensive experience in renewable energy generation.
  • The project is expected to attract future investment from private companies in subsequent similar projects in Azerbaijan and the Central Asia and Caucasus region.
  • Azerbaijan has been rapidly developing its economy since independence in 1991, led by oil and natural gas exploration.
  • The country's energy mix is heavily concentrated on fossil fuels, with gas-fired power generation accounting for over 90% of its total output of electricity (IEA's projection in 2019).
  • The government aims to increase the share of renewable energy to 30% by 2030 and adhere to the Paris Agreement.
  • The project will contribute to the achievement of SDGs Goals 7 (Affordable and clean energy), 13 (Climate action), and 17 (Partnerships for the goals).

Statistics:

  • 120% increase in Azerbaijan's economic development since independence in 1991 led by oil and natural gas exploration (Source: IEA's projection in 2019).
  • 90% of Azerbaijan's total output of electricity is generated by gas-fired power generation (IEA's projection in 2019).
  • 30% increase in the share of renewable energy to be achieved by 2030 (Source: Azerbaijani government's goal).
  • 230MW capacity of the Solar PV Plant Project.
  • Over 40 countries where Abu Dhabi Future Energy Company PJSC (Masdar) is active as a developer of renewable energy projects.
  • 15 years of experience in renewable energy generation for Abu Dhabi Future Energy Company PJSC (Masdar) (Source: provided text).

Sources:

  • IEA's projection in 2019 (not specified in the provided text).
  • Azerbaijani government's goal (not specified in the provided text).
  • Pivotalsources.com (cited in the provided text).

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