Masdar and SOCAR Green have announced financial close for 760 MW solar PV capacity in Azerbaijan
This capacity comprises the 445 MW Bilasuvar and the 315 MW Neftchala solar projects
They signed the agreement with the lending consortium of the EBRD, ADB and AIIB
The consortium of Masdar and SOCAR Green have achieved financial close for their 2 solar PV projects planned in Azerbaijan with 445 MW and 315 MW capacity. Respectively Bilasuvar and Neftchala solar projects, these are estimated to a total of more than $600 million.
Both the partners signed on the financing agreement with the European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB) at COP29 in Azerbaijan’s capital Baku.
The projects have been under construction since June 2024, which is due to be completed by Q1 2027. On completion, these projects will generate over 1.7 billion kWh annually, enough to save 380 million cubic meters of natural gas/year.
“Reaching financial close for the 760 MW solar power plants marks a significant milestone in achieving Azerbaijan's renewable energy sector goals,” said Azerbaijan’s Minister of Energy, Parviz Shahbazov. “The solar power plants will play a crucial role in accelerating our energy transition, reducing carbon emissions, and advancing the goal of becoming a ‘green energy’ country.”
For Masdar, these projects follow the 230 MW Garadagh project it completed here last year as the country’s ‘largest’. The company has committed to investing in 10 GW of renewable energy capacity in the country (see Masdar Signs Up For 1 GW RE Projects In Azerbaijan).
The Abu Dhabi based renewables company signed 3 investment agreements for green energy projects with a total capacity of 1 GW with Azerbaijan. Investment Agreements envisage the implementation of a 445 MW solar power plant in the Bilasuvar region, a 315 MW SPP in the Banka settlement of the Neftchala region and a 240 MW WPP in the Absheron-Garadagh region.
“Azerbaijan is a key strategic market for us, and we are committed to helping the country achieve its ambitious clean energy targets,” said Masdar CEO Mohamed Jameel Al Ramahi.
By 2030, Azerbaijan targets to increase the share of renewables in its total power mix to a minimum of 30%. The Energy Ministry pegs the country’s technical potential for onshore renewable energy sources at 135 GW and 157 GW for offshore. However, their economic potential is estimated at 27 GW, comprising 23 GW of solar, 3 GW of wind, 380 MW of bioenergy, and 520 MW of mountain rivers.
.png?w=50&fm=png){kind=logo}