Abu Dhabi Future Energy Company (Masdar) and SOCAR Green, a wholly-owned subsidiary of SOCAR dedicated to sustainable projects, have reached financial close for the 445MW Bilasuvar and 315MW 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.
Masdar and SOCAR Green broke ground on the Bilasuvar and Neftchala solar parks during a ceremony at Baku Energy Week in June 2024. The project construction will be completed by the first quarter of 2027.
Dr. Sultan bin Ahmed Al Jaber UAE Minister of Industry & Advanced Technology Chairman – Masdar President – COP28
“Long-term investments and partnerships are the driving force for unlocking vital climate finance and new clean energy capacity. The UAE and Azerbaijan have a longstanding commitment to seize opportunities that ensure we can provide affordable, clean energy to those who need it. This agreement further underscores our dedication to driving low-carbon socioeconomic progress in key markets, while pursuing the ambitious goals of the historic UAE Consensus, by tripling renewable energy capacity by 2030.”
Parviz Shahbazov, Minister of Energy for the Republic of Azerbaijan, stated that, “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. 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.”
“We are very 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,” Masdar Chief Executive Officer Mohamed Jameel Al Ramahi noted.
Rovshan Najaf, President of SOCAR, said that, “SOCAR and Masdar have achieved a historic milestone, capitalizing on the strength of their strategic partnership and shared vision. The financial close of two solar projects with a combined capacity of 760MW marks a significant step forward in our commitment to diversifying energy sources and advancing our sustainable development goals. This partnership with Masdar exemplifies the forward-looking and collaborative approach essential to driving meaningful progress in the energy sector.”
