ADB, Masdar to build two large-scale solar plants in Azerbaijan

Two deals were signed valued at $160m.

The Asian Development Bank (ADB), and Abu Dhabi-based energy firm Masdar have signed two loan agreements to build two of the largest solar power plants in Azerbaijan.

According to ADB, the solar plants, located in Bilasuvar and Neftchala districts, will triple the country’s solar energy capacity with its additional 760 megawatts of clean energy. The facilities are expected to offset about 725,000 tonnes of carbon dioxide emissions annually.

The $160m financing package will allocate $48m for the Bilasuvar power plant and $33.5m for the Neftchala power plant, funded from ADB’s ordinary capital resources. The Leading Asia’s Private Infrastructure Fund 2 provided up to $46m for the Bilasuvar and up to $32m for Neftchala plant, both to be administered by ADB.

The Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development have joined as co-lenders for the projects.

SOCAR Green has also partnered with Masdar to co-sponsor the power plants. The State Oil Company of Azerbaijan unit will lead renewable energy initiatives and develop carbon reduction strategies for the country.