Masdar & SOCAR Green: 760MW Solar Projects in Azerbaijan Financed

Abu Dhabi Future Energy Company PJSC – Masdar, a leading clean energy company from the UAE, and SOCAR Green, a subsidiary of SOCAR focused on sustainable projects, have announced the financial close of two major solar projects in Azerbaijan. The projects, the 445 MW Bilasuvar and 315 MW Neftchala solar plants mark a significant step in Azerbaijan’s renewable energy journey.

Financing Details

The financing for the solar projects is being provided by the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB). The total investment in the projects is estimated to exceed $600 million, highlighting the strong international support for Azerbaijan’s clean energy ambitions.

Agreement Signing at COP29

The agreements were signed during COP29 in Baku, underscoring their alignment with global climate goals. Notable figures attending the signing ceremony included H.E. Parviz Shahbazov, Azerbaijan’s Minister of Energy; Abdulaziz AlObaidli, COO of Masdar; Afgan Isayev, Vice President of SOCAR; and Harry Boyd-Carpenter, Managing Director for Climate Strategy and Delivery at EBRD.

Key Signatories of the Agreements

The official agreements were signed by Abdulla Zayed, Masdar’s Director of Business & Project Development; Elmir Musayev, SOCAR Green’s General Director; Aida Sitdikova, EBRD’s Director for Energy in Eurasia, the Middle East, and Africa; James Lok from AIIB; and Mayank Choudhary, Director at ADB. Their collective efforts emphasize the multinational collaboration driving these projects forward.

Construction Timeline and Milestones

The groundbreaking for the Bilasuvar and Neftchala solar projects took place during Baku Energy Week in June 2024. Construction is set to be completed by the first quarter of 2027, positioning the projects as a cornerstone of Azerbaijan’s renewable energy strategy.

Masdar’s Commitment to Azerbaijan

Masdar remains a pivotal partner in Azerbaijan’s energy transition. In addition to the Bilasuvar and Neftchala projects, the company has signed agreements to develop onshore wind and solar projects, along with integrated offshore wind and green hydrogen initiatives. These agreements aim for a combined capacity of 10 GW. Masdar’s earlier milestone in Azerbaijan, the 230 MW Garadagh solar plant, was inaugurated in October 2023.

Masdar’s Global Vision

Since its founding in 2006, Masdar has been a driving force behind the UAE’s leadership in sustainability and climate action. The company operates in over 40 countries and aims to expand its renewable energy portfolio to 100 GW by 2030. Additionally, Masdar is focused on becoming a leader in green hydrogen production within the same timeframe.

H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President, said: “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.”

H.E. 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. 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.”

Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said: “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.”

Rovshan Najaf, President of SOCAR, said: “SOCAR and Masdar have today 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.”

SOCAR Green’s Role in Azerbaijan’s Energy Future

SOCAR Green, established in 2024 as a wholly-owned subsidiary of SOCAR, spearheads Azerbaijan’s renewable energy initiatives. The company focuses on large-scale solar, wind, and green hydrogen projects. By fostering strategic international partnerships, SOCAR Green is helping Azerbaijan achieve its climate goals and contributing to global sustainability efforts.

This partnership between Masdar and SOCAR Green underscores the growing global commitment to renewable energy and marks a transformative moment for Azerbaijan’s clean energy landscape.