- Masdar and SOCAR secured $480 million in funding for 760 MW solar projects in Azerbaijan, with backing from EBRD, ADB, and AIIB.
- Construction of the 445 MW Bilasuvar and 315 MW Neftchala solar parks began in June 2024. They are set to power 300,000 homes by 2027.
- The projects mark Azerbaijan’s push to diversify energy sources and reduce reliance on fossil fuels while boosting local jobs and reducing emissions.
UAE-based renewable energy developer Masdar and Azerbaijan’s State Oil Company (SOCAR) have secured funding for two solar projects with a combined capacity of 760 MW. The European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB) will provide $160 million (EUR 151.4 million) each for the 445 MW Bilasuvar and 315 MW Neftchala solar parks. Officials signed the financing agreements during the COP29 climate summit in Baku.
Masdar and SOCAR began construction on both solar parks in June 2024. With an investment of over $600 million, the companies expect the projects to go live by the first quarter of 2027. Solar parks generate enough electricity to power around 300,000 homes annually.
These projects represent a crucial step in Azerbaijan’s efforts to diversify its energy sources. The country aims to reduce its heavy reliance on oil and gas while expanding renewable energy production. By moving forward with large-scale solar projects, Azerbaijan strengthens its position in the global transition to clean energy and aligns with international climate goals.
Masdar continues to expand its global renewable energy portfolio and supports Azerbaijan’s shift to cleaner energy. SOCAR, known for its oil and gas operations, has also taken steps to invest in renewable projects. Both companies aim to support Azerbaijan’s clean energy growth while diversifying their energy assets.
The EBRD, ADB, and AIIB are critical in backing Azerbaijan’s renewable energy projects. Their funding will help drive the completion of the Bilasuvar and Neftchala solar parks. The involvement of these multilateral development banks highlights the importance of public-private partnerships in advancing clean energy projects in emerging markets.
Azerbaijan’s government has introduced policies to encourage foreign investments in renewable energy. The country’s favourable climate and location have great potential for solar and wind energy development. By attracting international developers like Masdar, Azerbaijan continues to ramp up its renewable energy production and work towards its clean energy goals.
Once operational, the Bilasuvar and Neftchala solar projects will meet local electricity demand and support energy exports. The plants will also contribute to reducing Azerbaijan’s carbon emissions and help combat climate change.
The projects will generate economic benefits during construction by creating jobs and stimulating local development. These investments reinforce Azerbaijan’s commitment to advancing its renewable energy targets while supporting broader sustainable development efforts.
With Masdar and SOCAR leading these large-scale solar projects, Azerbaijan strengthens its role as a rising global player in the renewable energy sector.
(USD 1.0 = EUR 0.946)