UAE’s Masdar signs deal to develop $200 million solar power project in Azerbaijan

Baku, April 7 - Neftegaz.RU. Mohamed Jameel Al Ramahi, CEO of Masdar, signed the Investment Agreement for the project with Parviz Shahbazov, Minister of Energy of Azerbaijan, he also signed a Power Purchase Agreement & Transmission Connection Agreement with Baba Rzayev, President of Azerenerji, the national electrical power company and off-taker for the project.

Masdar signed the implementation agreement for the project in January last year.
The plant is expected to start commercial operation in early 2023.

#Masdar has signed agreements to develop a utility-scale solar PV project in the Republic of #Azerbaijan. The 230-megawatt (MWac) project is the country’s first foreign investment-based independent solar project structured as a public-private partnership.#ForASustainableFuture pic.twitter.com/zcpD2yriE9

— Masdar (@Masdar) April 7, 2021

Azeri Minister of Energy P.Shahbazov said:

• The transformation of Azerbaijan into a country of green growth through the extensive use of renewable energy sources over the next 10 years has been defined by President Aliyev as one of the national priorities that will ensure socio-economic development
• By signing these contracts for a solar power plant worth about $200 million, we are one step closer to our goals for the renewable energy and carbon emissions
• The solar power plant to be built in Baku and Absheron district will produce about 500 million kWh of electricity annually, save 110 million m³ of natural gas, reduce carbon emissions by 200,000 tons, create new jobs and attract other investors to new projects

Ahmed Al Jaber, Chairman of Board of Directors of Masdar, Minister of Industry and Advanced Technology of UAE said:

• Through Masdar, the UAE has partnered on profitable renewable energy projects generating 11 GW of renewable energy in more than 30 countries around the world
• And today we are proud to begin our 1^st renewable energy project in Azerbaijan
• By adding 230 MW of solar power, our partnership will not only help to achieve clean energy target but will also create knowledge, skills and jobs

Speaking at the event, President of Azerenergy Baba Rzayev said:

• According to the signed agreements, the connection of the 230 MW power plant to be built by the company to the network and the purchase of electricity generated at the plant will be performed by Azerenergy
• The power plant will be integrated into the energy system by connecting to the Janub substation

Azerbaijan plans to increase its installed power capacity to 30% from renewable sources by 2030, in an effort to diversify its economy and reduce greenhouse gas emissions.

Masdar, fully owned by Mubadala Investment Company, is a major player in the renewable energy sector across the globe.
It currently operates in more than 30 countries with a total renewable energy capacity of 10.7 GW representing a combined investment of circa $19.9 billion.
It is also active in Uzbekistan, Armenia and Kazakhstan.