Masdar and SOCAR launch 1GW renewable energy projects in Azerbaijan

Abu Dhabi Future Energy Company PJSC – Masdar, a leader in the UAE’s renewable energy sector, and the State Oil Company of Azerbaijan Republic (SOCAR), have commenced the groundbreaking of three significant solar and wind energy projects in Azerbaijan. This development, with a combined capacity of 1 gigawatt (GW), was officially initiated during the opening ceremony of Baku Energy Week, marking a major leap in Azerbaijan’s renewable energy journey.

Groundbreaking Ceremony Highlights Strategic Partnerships

The ceremony, attended by prominent figures including HE Ilham Aliyev, President of Azerbaijan, and HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, underscored the strong strategic partnership between Azerbaijan and the UAE. The presence of these high-level officials highlights the project’s significance in the broader context of energy diversification and sustainable development in the region.

Key Projects and Agreements

The three projects inaugurated include the 445MW Bilasuvar Solar PV Project, the 315MW Neftchala Solar PV Project, and the 240MW Absheron-Garadagh Onshore Wind Project. These projects are not only ambitious in scale but are also pivotal for both countries’ commitments to renewable energy and carbon emission reductions. The investment agreements for these projects were formalized in October 2023, followed by the signing of Power Purchase Agreements, Transmission Connection Agreements, and Land Lease Agreements.

On the sidelines of the Baku Energy Week, Masdar and SOCAR further solidified their collaboration by signing a Shareholder Agreement for these projects, setting the stage for future developments.

Commitment to Sustainable Energy and Economic Growth

Dr. Sultan Al Jaber expressed his pride in this partnership, stating, “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.” This initiative aligns with the historic UAE Consensus, aiming to triple renewable energy capacity by 2030.

Parviz Shahbazov, Azerbaijan’s Minister of Energy, emphasized the project’s impact, “Laying the foundation of 3 stations with a capacity of 1 GW 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.”

Economic and Environmental Benefits

The projects are expected to generate 2.3 billion kWh annually, saving over 500 million cubic meters of natural gas and preventing more than 1 million tons of carbon emissions. This significant environmental impact underscores the projects’ role in Azerbaijan’s green agenda and its global commitments as a host of the COP conferences.

Masdar’s Strategic Vision in Azerbaijan

Masdar’s CEO, Mohamed Jameel Al Ramahi, remarked on the strategic importance of Azerbaijan in their global plans, “With this groundbreaking of 1GW wind and solar projects, in partnership with SOCAR, we take a significant step forward in realizing our ambitious plan to develop up to 10GW of clean energy by 2030 in Azerbaijan.”