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Masdar takes lead as Azerbaijan sets ambitious green targets

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Masdar has developed a 1gw Photo Voltaic (PV) project, converting sunlight into electricity
  • Project to generate electricity for more than 110,000 homes
  • Reduces emissions by more than 200,000 tonnes a year

Masdar, the Abu Dhabi-based renewable energy company, announced on Tuesday that it has achieved financial close for its 230mw Garadagh Solar Photovoltaic (PV) Plant in Azerbaijan.

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

The announcement comes as the UAE looks to play a key role in Azerbaijan’s plan to increase the share of renewable sources in its installed power capacity to at least 30 percent by 2030.

Masdar has also signed agreements with Azerbaijan’s Ministry of Energy to develop clean energy projects with a combined capacity of 4gw in the first phase, with the right to develop an additional 6gw in the second phase. 

Masdar signed two implementation agreements in June – one relating to the development of 1gw capacity of onshore wind projects and 1gw of PV projects, converting sunlight into electricity. These cover integrated offshore wind and green hydrogen projects with a capacity of 2gw.

Parviz Shahbazov, Minister of Energy of Azerbaijan, said: “Successful achievement of the next critical milestone is proof of our determined approach to the joint cooperation and commitment towards the realisation of the project.

“Our country has ambitious plans about utilisation of its ample renewable energy potential and we’re confident that this solar power project will be a trailblazer for future projects in the field of green energy.”

Mohamed Jameel Al Ramahi, CEO of Masdar, attended the ceremony for the Garadagh solar PV plant in March, which is expected to start commercial operation in 2023. 

Masdar is implementing wind and solar projects 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 jobs.

Al Ramahi said: “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 is one of the fastest-growing renewable energy companies in the world and aims to reach a capacity of at least 100gw by 2030, having grown its portfolio 40 percent last year. 

In December, the UAE government announced Abu Dhabi energy leaders TAQA, ADNOC, and Mubadala would join forces as shareholders in Masdar, creating a clean energy powerhouse that aims to be a global force in renewables and green hydrogen.

Masdar has also signed a memorandum of understanding (MoU) with the State Oil Company of Azerbaijan Republic (SOCAR) for the joint development of renewable energy sources.