Masdar has achieved financial close for its 230MW Garadagh Solar PV plant in Azerbaijan – the nation’s first foreign investment-based independent solar power project.
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 is targeting to increase the share of renewable sources in its installed power capacity to at least 30% by 2030, as the country looks to diversify its economy and reduce greenhouse gas emissions. This is Masdar’s first project in the country.
In March, Masdar’s CEO attended the groundbreaking ceremony for the Garadagh solar PV plant, which is expected to start commercial operation in 2023.
Masdar to develop 4GW of clean energy in phase one in Azerbaijan
The project will help to generate half a billion kilowatt-hours of electricity annually, enough to meet the needs of more than 110,000 homes, and will reduce emissions by more than 200,000 tonnes a year, while also creating valuable jobs.
Commenting on the occasion of achieving a successful financial close, Parviz Shahbazov, Azerbaijan’s Minister of Energy said: “Successful achievement of the next critical milestone in the project is a proof of our determined approach to the joint cooperation and commitment of the parties towards the realisation of the project.
“In line with the national priority on “A clean environment and country of green growth”, our country has ambitious plans for the utilisation of its ample renewable energy potential, and we are confident that this solar power project will be a great trailblazer for future projects in the field of green energy. This and other projects will further contribute to the realisation of the country’s NDCs by 2050, declared on the sidelines of COP 26 Conference.”
Meanwhile, Mohamed Jameel Al Ramahi, chief executive officer of Masdar, added: “The Garadagh plant is Masdar’s first project in Azerbaijan and therefore we are proud to reach this significant milestone in its development. The Garadagh project will serve as a benchmark for Azerbaijan’s clean energy journey, with the nation committed to transforming its energy sector and driving sustainable development.”
Masdar has also signed agreements with Azerbaijan’s Ministry of Energy to develop clean energy projects with a combined capacity of 4 gigawatts (GW) in the first phase, with the right to develop an additional 6 GW in the second phase.
The firm has signed two implementation agreements in June – one relating to the development of 1 GW capacity of onshore wind projects and 1GW of PV projects, the second covering integrated offshore wind and green hydrogen projects with a capacity of 2GW.