The European Bank for Reconstruction and Development (EBRD) has approved a loan of $51 million for a 230 MW solar power plant in Azerbaijan that Abu Dhabi Future Energy Company Masdar calls the country’s 1st foreign investment based independent power producer (IPP) project.
Masdar has been constructing the Garadagh Solar PV Plant since March 2022 near Alat settlement in Azerbaijan (see 230 MW Azerbaijan Project Enters Construction).
The long-term senior debt of up to $51 million, out of $250 million total project cost, will be used by a special purpose vehicle (SPV) called Masdar Azerbaijan Energy LLC to develop, construct and operate the PV plant, with Masdar acting as the project sponsor.
EBRD says the project will be the 1st privately owned utility scale solar power plant in the country and will also introduce a new international power sector sponsor here. It will also allow producing solar power electricity production to help Azerbaijan in its low-carbon transition and bringing down its reliance on thermal power generation.
“This would help substitute natural gas-based power plants and help in meeting the renewable energy targets set by the Government of Azerbaijan in line with county’s commitments under the Paris Agreement. The Project will also result in strong environmental benefits with estimated annual CO2 emissions savings of up to 200,000 tons,” stated EBRD about the project.