Japan International Cooperation Agency Signs Project Finance Loan Agreement for Solar PV Plant Project in Azerbaijan

The Japan International Cooperation Agency has signed a project finance loan agreement with Masdar Azerbaijan Energy Limited Liability Company to support the Solar PV Plant Project in 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, the European Bank for Reconstruction and Development, and the Abu Dhabi Fund for Development. The project aims to develop a 230MW solar power facility near the Alat settlement in Gradagh, minimizing the fiscal burden by leveraging private sector investment.

Key Takeaways:

• The project is the first large-scale solar power project in Azerbaijan, with a capacity of 230MW, and is expected to contribute to the achievement of SDGs Goals 7 (Affordable and clean energy), 13 (Climate action), and 17 (Partnerships for the goals).
• The project is co-financed by the Asian Development Bank, the European Bank for Reconstruction and Development, and the Abu Dhabi Fund for Development, making it the first project in Azerbaijan since the resumption of Private Sector Investment and Finance.
• Masdar, the sponsor of the project, is one of the largest developers of renewable energy projects in the Middle East, with extensive experience in renewable energy generation and operations in over 40 countries.
• The project is expected to attract future investment from private companies in subsequent similar projects in Azerbaijan and the Central Asia and Caucasus region, serving as a model project.
• The project aims to increase the share of renewable energy to 30% by 2030, in line with the government's goal to adhere to the Paris Agreement.
• The project will support the accomplishment of the government's goals and ensure a stable supply of electricity, while minimizing the fiscal burden by leveraging private sector investment.

Statistics:

• 230MW: capacity of the solar power facility;
• 30%: target share of renewable energy by 2030;
• 90%: share of gas-fired power generation in Azerbaijan's total electricity output (IEA's projection in 2019);
• 40+: number of countries where Masdar has operations and experience in renewable energy generation;
• 5: number of organizations co-financing the project (Japan International Cooperation Agency, Asian Development Bank, European Bank for Reconstruction and Development, Abu Dhabi Fund for Development, and Masdar Azerbaijan Energy Limited Liability Company).

Sources:

• The copyright holder is Euclid Infotech Pvt. Ltd., distributed by Contify.com