Masdar Achieves Financial Close for 230-MW Solar Project in Azerbaijan

Strategic Insights -

Azerbaijan has made significant progress in its renewable energy goals with the financial close of its first foreign investment-based independent solar power project, a 230-megawatt (MW) plant in Garadagh. The project, developed by Masdar, a leading renewable energy company, is co-financed by several international institutions, including the Abu Dhabi Fund for Development, the Asian Development Bank, and the European Bank for Reconstruction and Development. The project aims to generate 500 million kilowatt-hours of electricity annually, enough to power over 110,000 homes, and reduce greenhouse gas emissions by over 200,000 tonnes per year.

Key Takeaways:

  • The Garadagh Solar PV Plant in Azerbaijan is the country's first foreign investment-based independent solar power project and Masdar's first project in the country.
  • The project is co-financed by Abu Dhabi Fund for Development, the Asian Development Bank, the European Bank for Reconstruction and Development, and Japan International Cooperation Agency.
  • Azerbaijan aims to increase its share of renewable sources in installed power capacity to at least 30% by 2030.
  • The project will create valuable jobs and serve as a benchmark for Azerbaijan's clean energy journey.
  • Masdar has signed agreements with Azerbaijan's Ministry of Energy to develop clean energy projects with a combined capacity of 4 GW in the first phase, with the right to develop an additional 6 GW in the second phase.
  • Masdar is targeting to reach a capacity of at least 100 GW by 2030 and has grown its portfolio by 40% last year alone.

Statistics:

  • The Garadagh Solar PV Plant has a capacity of 230 MW.
  • The project will generate 500 million kilowatt-hours of electricity annually.
  • The project is expected to start commercial operation in 2023.
  • The UAE government has announced plans to join forces with Abu Dhabi energy champions TAQA, ADNOC, and Mubadala to create a global clean energy powerhouse.
  • Azerbaijan aims to reduce greenhouse gas emissions by 2050, as declared on the sidelines of COP 26 Conference.

Sources:

  • Masdar news release, August 2, 2022.
  • "Azerbaijan to increase renewable energy share to 30% by 2030", report by the Asian Development Bank.
  • "COP 26: Azerbaijan announces plans to join forces with UAE to create global clean energy powerhouse", article by Al Bawaba (Albawaba.com).