Masdar, SOCAR Green Reach Financial Close For 445MW Bilasuvar, 315MW Neftchala Solar Projects

A subsidiary of SOCAR focused on sustainable projects, SOCAR Green and Abu Dhabi Future Energy Company (Masdar), have finalized the financial arrangements for the 445MW Bilasuvar and 315MW Neftchala solar projects in Azerbaijan.

The European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Asian Infrastructure and Investment Bank (AIIB) are providing funding for the two solar projects, with the total cost expected to exceed USD 600 million.

Masdar is committed to helping Azerbaijan with its energy transition. It has signed agreements to develop onshore wind and solar projects, as well as offshore wind and green hydrogen projects, with a total capacity of 10GW.

Masdar's first project in Azerbaijan, the 230MW Garadagh solar plant, was officially opened in October last year.

Dr. Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President, emphasized that long-term investments and partnerships are key to unlocking climate finance and expanding clean energy capacity.

He highlighted the strong relationship between the UAE and Azerbaijan in pursuing opportunities to provide affordable and clean energy.

This agreement further demonstrates their commitment to promoting low-carbon economic growth in important markets while working toward the UAE's goal of tripling renewable energy capacity by 2030, as per Al Jaber.

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," WAM reported.

"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," he added.

Masdar CEO Mohamed Jameel Al Ramahi expressed his satisfaction with signing financing agreements for two major solar projects in Azerbaijan following the completion of the country's largest solar plant in Garadagh last year.

He said that Azerbaijan is an important market for Masdar, and they are committed to supporting the country's clean energy goals.

Rovshan Najaf, President of SOCAR, highlighted the historic achievement of finalizing the financial arrangements for the two solar projects with a combined capacity of 760MW. He said that this milestone reflects SOCAR and Masdar's strong partnership and shared vision to diversify energy sources and advance sustainable development goals in the energy sector.