Masdar explores new solar, storage projects in Azerbaijan

The UAE’s Abu Dhabi Future Energy Company (Masdar) has entered into a collaborative agreement with private developer Azerbaijan Green Energy Company (AGEC) to develop new renewable energy projects in Azerbaijan.

The agreement includes the potential expansion of Masdar’s existing 230 MW Garadagh solar PV plant by a minimum of 350 MW, together with the addition of up to 200 MWh of battery energy storage.

The Garadagh project, inaugurated in 2023, signalled Masdar’s entry into the Azerbaijan market. The facility, which generates enough energy to power more than 110,000 homes, was also Azerbaijan’s first foreign investment-based independent utility-scale solar power project.

Masdar and AGEC’s agreement will also explore the development of a 100 MW round-the-clock renewable energy project. A statement posted by Masdar says the project would build on its gigascale round-the-clock renewable project in Abu Dhabi, a solar-plus-storage facility that will be capable of delivering up to 1 GW of baseload renewable power 24 hours a day, that reached financial close in July.

Masdar’s latest update also confirms it has reached financial close on its 315 MW Neftchala solar PV project, located in the Neftchala district of southeastern Azerbaijan. The project is expected to generate enough to power around 140,000 homes.

The Neftchala project is being developed by Masdar alongside Socar Green, a wholly-owned subsidiary of Azerbaijan’s Socar state oil company, in collaboration with the country’s Ministry of Energy. Financing is being provided by the Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development and the Asian Development Bank.

Masdar is developing a further two projects with Socar Green – the 445 MW Bilasuvar solar project and a 240 MW onshore wind project – taking the company’s total capacity in Azerbaijan to over 1.2 GW.

Khayala Naghiyeva, AGEC Deputy Chairman of the Executive Board, said the latest agreement “represents an important step toward integrating renewable generation with energy storage and developing more resilient energy solutions for Azerbaijan.”

“We look forward to turning these opportunities into bankable, high-impact projects that contribute to Azerbaijan’s long-term sustainable growth,” Naghiyeva added.

Azerbaijan’s cumulative solar capacity stood at 281 MW at the end of last year, according to figures published by the International Renewable Energy Agency (IRENA), the same figure reported at the end of the year prior.