Masdar and SOCAR Green achieve financial close for 760MW of solar projects in Azerbaijan

Masdar, the UAE’s clean energy powerhouse, and SOCAR Green, a wholly-owned subsidiary of SOCAR dedicated to sustainable projects, have reached financial close 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 financing the two solar projects, with the total cost expected to be more than US$600 million.

Unlocking vital climate finance

The agreements were signed on the sidelines of COP29 in Baku. They were witnesses by H.E. Parviz Shahbazov, Minister of Energy for the Republic of Azerbaijan, Abdulaziz AlObaidli, COO of Masdar, Afgan Isayev, Vice President of SOCAR, and Harry Boyd-Carpenter, Managing Director, Climate Strategy and Delivery at EBRD.

The agreements were signed by Abdulla Zayed, Director of Business & Project Development at Masdar, Elmir Musayev, General Director of SOCAR Green,  Aida Sitdikova, Director Energy Eurasia, Middle East and Africa at EBRD, James Lok, Lead Investment Officer, Project and Corporate Finance Clients Department, Global at AIIB, and Mayank Choudhary, Director, Private Sector Operations Department at ADB.

Masdar and SOCAR Green broke ground on the Bilasuvar and Neftchala solar parks during a ceremony at Baku Energy Week in June 2024. Construction on the projects is due to be completed by the first quarter of 2027.

H.E. Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President, said: “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.”

H.E. 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. 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.”

Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said: “We are very pleased to sign financing agreements for these two major solar projects in Azerbaijan, so soon after completing the largest solar plant in the country in Garadagh last year. Azerbaijan is a key strategic market for us, and we are committed to helping the country achieve its ambitious clean energy targets.”

Rovshan Najaf, President of SOCAR, said: “SOCAR and Masdar have today achieved a historic milestone, capitalising 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.”

Supporting Azerbaijan’s energy transition

Masdar is dedicated to supporting Azerbaijan’s energy transition. It has signed agreements to develop onshore wind and solar projects and integrated offshore wind and green hydrogen projects with a total combined capacity of 10GW. Its first project in Azerbaijan, the 230MW Garadagh solar plant, was inaugurated in October last year.

Since its establishment in 2006, Masdar has been a key enabler of the UAE’s vision as a global leader in sustainability and climate action. The company has developed and partnered in projects in over 40 countries, with a mandate to increase its renewable energy portfolio capacity to 100GW by 2030 and to become a leading producer of green hydrogen by the same year.

Established in 2024, SOCAR Green is a wholly-owned subsidiary of SOCAR, a global energy company headquartered in Azerbaijan. Positioned at the forefront of the nation's transition to renewable energy, SOCAR Green drives the implementation of clean energy initiatives, including large-scale solar, wind, and green hydrogen projects. Through strategic partnerships with international leaders in renewable energy, SOCAR Green supports Azerbaijan’s commitment to achieving its national climate targets and contributing to global sustainability goals.