ADB and Masdar Sign USD 160 million Deal to Develop Two Mega Solar Power Plants in Azerbaijan

ADB and Masdar are building Azerbaijan’s largest solar plants in Bilasuvar and Neftchala, tripling the nation’s solar capacity and offsetting 725,000 tons of CO2 annually.

The Asian Development Bank (ADB) and Abu Dhabi Future Energy PJSC (Masdar) have joined forces to construct two of Azerbaijan's largest solar power plants in Bilasuvar and Neftchala districts, located just 140 kilometers from the capital city of Baku. This monumental step in renewable energy development is poised to significantly bolster Azerbaijan's clean energy landscape.

Transforming Azerbaijan’s Solar Energy Capacity

The Bilasuvar and Neftchala solar power plants, with a combined capacity of 760 MW, are set to triple Azerbaijan’s existing solar energy production. Once operational, these plants will offset approximately 725,000 tons of carbon dioxide annually, a significant contribution to the country’s climate goals.

ADB Director General for Private Sector Operations Suzanne Gaboury highlighted the project's importance:

"By harnessing Azerbaijan’s solar potential, we are enhancing the country’s energy security and providing a model for sustainable development that can be replicated across the region."

Financing the Future of Renewable Energy

The $160 million financing package for these projects includes:

• ADB’s Ordinary Capital Resources: $48 million for Bilasuvar and $33.5 million for Neftchala.

• LEAP2 Fund Contributions: $46 million for Bilasuvar and $32 million for Neftchala, administered by ADB.

  
  

Additional co-lenders include the Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development.

Masdar and SOCAR Green: Driving Sustainability

Masdar, a leading global renewable energy company, and SOCAR Green, a subsidiary of the State Oil Company of Azerbaijan, co-sponsor the projects. SOCAR Green is tasked with implementing these renewable energy ventures and crafting strategic roadmaps for Azerbaijan’s carbon reduction goals.

Masdar’s involvement underscores its mission to expand its renewable energy portfolio to 100 GW globally by 2030.

Strategic Significance for the Region

These solar projects not only advance Azerbaijan’s energy independence but also exemplify public-private collaboration for sustainable development. They position Azerbaijan as a regional leader in renewable energy and offer a scalable model for other nations in Asia and beyond.