Emirati state-owned energy firm Masdar has achieved financial close for its Garadagh solar photovoltaic plant in Azerbaijan.
The 230MW solar project is the company’s first in Azerbaijan and the country’s first independent solar project funded by foreign investment.
Garadagh will have the capacity to generate 500 million kilowatt-hours of electricity a year, which will be enough to power more than 110,000 homes, while displacing more than 200,000t of carbon emissions annually.
The project is scheduled to become operational next year and is expected to create jobs in the region.
Masdar CEO Mohamed Jameel Al Ramahi said: “The Garadagh plant is Masdar’s first project in Azerbaijan and therefore we are proud to reach this significant milestone in its development.
“The Garadagh project will serve as a benchmark for Azerbaijan’s clean energy journey, with the nation committed to transforming its energy sector and driving sustainable development.”
Garadagh is co-financed by the Abu Dhabi Fund for Development, the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and the Japan International Cooperation Agency (JICA).
Azerbaijan plans to increase the share of renewable sources in its installed power capacity to at least 30% by 2030.
Azerbaijani Energy Minister Parviz Shahbazov said: “The successful achievement of the next critical milestone in the project is proof of our determined approach to the joint cooperation and commitment of the parties towards the realization of the project.
“This and other projects will further contribute to the realisation of the country’s nationally determined contributions (NDCs) by 2050, declared on the sidelines of the COP26 Conference.”
In June this year, Masdar signed two agreements to develop 4GW worth of clean and renewable energy projects in Azerbaijan.
The deals include the potential to develop an additional 6GW in a second phase, increasing the projects’ total production capacity to 10GW.