Abu Dhabi Future Energy Company PJSC (Masdar) and SOCAR, the State Oil Company of Azerbaijan, have commenced work on three major solar and wind projects in Azerbaijan with a total capacity of 1 gigawatt (GW).
The groundbreaking ceremony took place during the opening of Baku Energy Week, underscoring Masdar’s long-term commitment to Azerbaijan as a global strategic partner. The event was presided over by Ilham Aliyev, President of Azerbaijan, and Dr. Sultan Al Jaber, UAE minister of Industry and Advanced Technology and chairman of Masdar. Also in attendance were Parviz Shahbazov, Azerbaijan minister of Energy, Mikayil Jabbarov, Azerbaijan minister of Economy and chairman of the Supervisory Board of SOCAR, and Mohamed Jameel Al Ramahi, chief executive officer of Masdar.
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Details of the three projects
The three projects include the 445MW Bilasuvar Solar PV Project, the 315MW Neftchala Solar PV Project, and the 240MW Absheron-Garadagh Onshore Wind Project. Investment agreements for these projects were reached in October 2023, followed by the signing of power purchase agreements, transmission connection agreements, and land lease agreements.
UAE’s commitment to renewable energy expansion
His Excellency Dr Sultan Al Jaber, UAE minister of Industry and Advanced Technology and chairman of Masdar, said: “We are proud to partner with Azerbaijan on this significant expansion of its renewable energy capacity and to support Azerbaijan’s journey toward energy diversification, stimulating new industries, new jobs and sustainable economic growth. A key pillar of the historic UAE Consensus is the goal of tripling renewable energy capacity by 2030. We need many more partnerships like these to ensure a just, orderly and equitable energy transition that keeps 1.5 within reach.”
Azerbaijan-UAE renewable energy partnership
Parviz Shahbazov, Azerbaijan minister of Energy, said: “Today, Azerbaijan and the UAE have achieved another historic success with the strength of the synergy of brotherhood, friendship and strategic partnership in their relations. Laying the foundation of three stations with a capacity of 1GW is not only a first in the field of green energy in Azerbaijan, but also a bright indicator of our solidarity and commitment to the energy transition for the sake of the green world as COP host countries. Annual electricity generation of 2.3 billion kWh, saving over 500 million cubic metres of natural gas, as well as preventing more than 1 million tonnes of carbon emissions are the future contributions of these plants to sustainable development. We are pleased to realise our green agenda together with Masdar.”
Driving sustainable development through renewable energy
Moreover, Mikayil Jabbarov, Azerbaijan minister of Economy, and chairman of the Supervisory Board of SOCAR, said: “Today’s groundbreaking of Masdar’s and SOCAR’s jointly developed solar and wind projects represents a significant milestone in Azerbaijan’s energy journey. These initiatives underscore our commitment to diversify our energy sources and advance our sustainable development goals. Our partnership with Masdar exemplifies the forward-thinking and collaborative spirit necessary to drive impactful change in the energy sector. Together, we are setting a new standard for green energy projects that will benefit our economy, environment, and society for generations to come.”
Shareholder agreement and Masdar’s previous project
Masdar and SOCAR also signed a shareholder agreement for the three projects. This follows Masdar’s completion of the 230MW Garadagh solar plant in October 2023, which was Azerbaijan’s first foreign investment-based independent solar power project and the largest solar plant in the region.
Masdar’s renewable energy ambitions
Additionally, Masdar aims to build a renewable energy portfolio with a capacity of 100GW by 2030, supporting the target set in The UAE Consensus to triple global renewables capacity by the end of this decade. The company also aspires to be a leading producer of green hydrogen by the same year.
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