ADB, Masdar to build 230MW solar power plant in Azerbaijan
The loan financing the project is worth $21.4m.
The Asian Development Bank (ADB) and Masdar Azerbaijan Energy Limited Liability Company have signed a $21.4m loan agreement to build a 230-megawatt solar power plant.
The project, which will be located near the Alat settlement in Azerbaijan, is considered the first significant renewables investment in the country.
“The plant will spur further private sector investment in the renewables sector in Azerbaijan and help the government achieve its target of 30% of renewable energy share in total generation capacity by 2030,” Director of Infrastructure Finance for South Asia, Central Asia, and West Asia of ADB's Private Sector Operations Department Shantanu Chakraborty, said.
Masdar had previously signed agreements to develop the Garadagh project, 9 kilometres northwest of the Alat settlement. It is set to be operational in 2023.
The project, signed in April 2021, was co-financed with the European Bank for Reconstruction and Development, Japan International Cooperation Agency, and Abu Dhabi Fund for Development.
According to the ADB, Azerbaijan is heavily reliant on fossil fuels, particularly natural gas. With the new solar power plant, up to 558 gigawatt-hours of clean energy is expected to be generated annually. This does away with up to 265,000 tonnes of annual carbon emissions.