- Masdar has been selected by the Azerbaijan Ministry of Energy to develop solar power capacity in the country
- The utility scale solar power plant will have 200 MW capacity and along with 250 MW won by ACWA Power in the government auction, both projects will generate about 1.4 billion kWh of clean power
- Project location of the solar power plant is 75 kilometers southwest of Baku
- Masdar will target financial close on the project by the end of 2020 and complete it in 2022
The Azerbaijan Ministry of Energy has selected Masdar as the winner of a three-stage selection process to develop 200 MW solar power capacity in the country. Under the auction launched in 2019, out of seven bidders that submitted proposals Saudi Arabia’s ACWA Power also won 250 MW wind power capacity.
Both the companies will develop their projects as pilot projects. They are expected to produce about 1.4 billion kWh of clean power on completion.
Masdar said it has signed an agreement with the ministry to design, finance, build and operate the 200 MW utility scale solar PV project 75 km southwest of Azerbaijan’s capital, Baku. It hopes to achieve financial close on the project by the end of 2020 and grid connect it in 2022.
This project is in line with Azerbaijan’s target to have 30% share of renewable energy in its power mix by 2030. “The diversification of electricity production via utilising renewable energy sources is one of the main priorities of focus by the President of the Republic of Azerbaijan. By signing this agreement, from now on, we are starting a new phase in the renewable energy sector of Azerbaijan,” said country’s Energy Minister Parviz Shahbazov.
According to the Renewable Energy Capacity Statistics 2019 by the International Renewable Energy Agency (IRENA), solar power capacity of Azerbaijan till the end of 2018 was 36 MW out of 1,389 MW.
The European Bank for Reconstruction and Development (EBRD) had launched a solicitation in March 2019 to find a consultant to frame a competitive bidding mechanism for renewable energy in the country (see EBRD Seeking Consultant For RE In Azerbaijan).