Masdar, the UAE’s leading clean energy company, and SOCAR Green, a subsidiary of SOCAR focused on sustainability initiatives, have reached financial close on the Bilasuvar (445 MW) and Neftchala (315 MW) solar projects in Azerbaijan.
EBRD, ADB and AIIB to Fund Solar Projects with US$600 Million
The European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB) are financing the two solar projects, with a total estimated cost exceeding US$600 million.
The agreements were signed during COP29 in Baku, witnessed by Azerbaijan’s Minister of Energy, Masdar’s COO, SOCAR’s Vice President, and the Managing Director of Climate Strategy and Delivery at EBRD.
Signatories included the Director of Business & Project Development at Masdar, the General Director of SOCAR Green, the Director of Energy for Eurasia, Middle East, and Africa at EBRD, the Lead Investment Officer at AIIB, and the Director of the Private Sector Operations Department at ADB.
“Long-term investments and partnerships are the driving force for unlocking vital climate finance and new clean energy capacity. The UAE and Azerbaijan have a longstanding commitment to seize opportunities that ensure we can provide affordable, clean energy to those who need it.
This agreement further underscores our dedication to driving low-carbon socioeconomic progress in key markets, while pursuing the ambitious goals of the historic UAE Consensus, by tripling renewable energy capacity by 2030,” said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President.
Construction on Bilasuvar and Neftchala Solar Projects
Masdar and SOCAR Green broke ground on the Bilasuvar and Neftchala solar projects during a ceremony at Baku Energy Week in June 2024, with completion expected by the first quarter of 2027.
“Reaching financial close for the 760 MW solar power plants marks a significant milestone in achieving Azerbaijan’s renewable energy sector goals. 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,” said Parviz Shahbazov, Minister of Energy for the Republic of Azerbaijan.
“SOCAR and Masdar have today achieved a historic milestone, capitalizing on the strength of their strategic partnership and shared vision. The financial close of two solar projects with a combined capacity of 760MW marks a significant step forward in our commitment to diversifying energy sources and advancing our sustainable development goals.
This partnership with Masdar exemplifies the forward-looking and collaborative approach essential to driving meaningful progress in the energy sector,” said Rovshan Najaf, President of SOCAR.
Masdar and SOCAR Green Drive Azerbaijan’s Renewable Energy Transition
Masdar is committed to supporting Azerbaijan’s energy transition and has signed agreements to develop onshore wind and solar projects as well as integrated offshore wind and green hydrogen initiatives with a total combined capacity of 10GW. The company’s first project in Azerbaijan, the 230MW Garadagh solar plant, was inaugurated in October 2023.
Since its founding in 2006, Masdar has played a pivotal role in advancing the UAE’s vision as a global leader in sustainability and climate action. The company has developed and collaborated on projects in over 40 countries, with plans to expand its renewable energy portfolio to 100 GW and become a leading producer of green hydrogen by 2030.
Founded in 2024, SOCAR Green is a fully-owned subsidiary of SOCAR—a global energy company based in Azerbaijan that is leading the nation’s transition to renewable energy. The company drives large-scale clean energy projects, including solar, wind, and green hydrogen initiatives. Through strategic partnerships with international renewable energy leaders, SOCAR Green helps Azerbaijan achieve its climate goals and contribute to global sustainability efforts.
