Masdar signs 1GW clean energy agreement in Azerbaijan

Abu Dhabi Future Energy Company (Masdar) has signed agreements for solar and onshore wind projects with a total capacity of 1 gigawatt (GW) in Azerbaijan. This development followed the inauguration of the region’s largest operational solar plant, the 230MW Garadagh Solar Park.

The park is Azerbaijan’s first foreign investment-based independent solar power project and Masdar‘s first project in the country.

The strategic agreements cover the progression of the first phase of a 10GW pipeline of renewable energy projects in Azerbaijan signed in June 2022.

This follows the successful development of Garadagh, Azerbaijan’s first foreign investment-based independent solar power project, and the largest solar plant in the region.

Dr Sultan Al Jaber, COP28 President-Designate and chairman of Masdar, said: “Garadagh is a testament to our shared commitment to diversifying the global energy mix. Azerbaijan’s ambition to develop low and zero-carbon solutions through renewable energy, and it’s exactly what the world needs at this time.

“The UAE is proud to support Azerbaijan’s clean energy goals, to generate more than 30 percent of its overall energy capacity from renewables by 2030. We need all nations of the world to set out clear energy transition plans with clear targets for renewable energy capacity. As the UAE prepares to host COP28 in November, our North Star for climate action must be to keep the ambition of limiting global temperatures to 1.5C within reach.”

Speaking at the inauguration, Dr Sultan Al Jaber also commended President Ilham Aliyev and the nation of Azerbaijan for its commitment to a defined, strategic plan of action to develop new industries, new jobs and green economic growth.

Parviz Shahbazov, Azerbaijan Minister of Energy, commented: “The commissioning of the largest solar power plant based on the first foreign investment in our energy history, as well as the signing of investment agreements for the implementation of solar and wind energy projects with a capacity of 1,000MW, show that our country’s green energy and green investment plans are successfully becoming a reality.

“Azerbaijan is pleased to realise its strategic goals as a green energy producing and exporting country with Masdar and these projects will play an important role in increasing the share of renewable energy sources in electricity generation capacity to 30 per cent by 2030.”

First project by Masdar in Azerbaijan

The Garadagh plant will generate half a billion kilowatt-hours of electricity each year, enough to power more than 110,000 homes, reducing carbon emissions by over 200,000 tonnes a year.

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.

Mohamed Jameel Al Ramahi, CEO said: “The inauguration of Garadagh, the largest operational plant in the region, is a milestone achievement. Azerbaijan is a key strategic partner for Masdar and the signing of these additional agreements today pave the way to accelerate the scale of Azerbaijan’s clean energy vision.

“Garadagh is the first in a number of potential projects to develop onshore wind, offshore wind, solar and green hydrogen with a total combined capacity of 10GW. This will lead to greater investment and international collaboration as we work together to help Azerbaijan achieve its ambitious climate goals.”