Azerbaijan gives green light to 760 MW of solar

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Utility-scale solar developer Masdar is set to develop two new solar projects in Azerbaijan.

Masdar will build three solar and wind projects with a combined capacity of 1 GW. Masdar and State Oil Company of Azerbaijan Republic (SOCAR) have signed a shareholder agreement for each of the projects.

The installations include the 445 MW Bilasuvar PV project and the 315 MW Neftchala solar plant, both in southeastern Azerbaijan. Investors signed investment agreements for the projects in October 2023 and have since signed power purchase agreements, transmission connection agreements, and land lease agreements.

Azerbaijan Energy Minister Parviz Shahbazov said the three projects will generate 2.3 billion kWh of electricity per year.

“Laying the foundation of 3 stations with a capacity of 1 GW is not only a first in the field of green energy in Azerbaijan, but also a bright indicator of our solidarity and commitment to the energy transition,” said Shahbazov.

Masdar completed a 230 MW solar plant in Garadagh, near Baku, in October 2023. It is Azerbaijan’s first foreign investment-based independent solar project and currently the largest PV plant in the Caspian region. Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said Azerbaijan is a “key strategic market” for the company.

Azerbaijan has set a target of generating 30% of its energy capacity from renewables by 2030. The country’s total solar capacity reached 282 MW at the end of last year, according to figures from the International Renewable Energy Agency (IRENA). Azerbaijan’s first-ever solar auction, for a 100 MW project, launched earlier this year.

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