Abu Dhabi Future Energy Company (Masdar) and SOCAR Green, a wholly-owned subsidiary of SOCAR dedicated to sustainable projects, announced reaching financial close for the 445 MW Bilasuvar and 315 MW Neftchala solar projects in Azerbaijan.
The European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB) and the Asian Infrastructure and Investment Bank (AIIB) are financing the two solar projects, with the total cost expected to be more than $600 million.
The agreements for the project financing were signed on the sidelines of COP29 in Baku.
Masdar and SOCAR Green broke ground on the Bilasuvar and Neftchala solar parks during a ceremony at Baku Energy Week in June 2024.
Construction on the projects is due to be completed by the first quarter of 2027.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President, said the agreement further underscores the company’s dedication to driving low-carbon socio-economic progress in key markets.
“It also exhibits how we are pursuing the ambitious goals of the historic UAE Consensus, by tripling renewable energy capacity by 2030,” Al Jaber said.
Parviz Shahbazov, Minister of Energy for the Republic of Azerbaijan, said reaching financial close for the 760 MW solar power plants marks a significant milestone in achieving Azerbaijan’s renewable energy sector goals.
“This agreement highlights Azerbaijan’s successful partnership with Masdar and demonstrates the confidence of investors and international financial institutions in our country,” he said.
Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said the company is pleased to sign financing agreements for these two major solar projects in Azerbaijan, so soon after completing the largest solar plant in the country in Garadagh last year.
“Azerbaijan is a key strategic market for us, and we are committed to helping the country achieve its ambitious clean energy targets,” he said.
Rovshan Najaf, President of SOCAR, said the financial close of the two solar projects marks a significant step forward in their commitment to diversifying energy sources and advancing the sustainable development goals.
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