Image: Hikmat Gafarzada, Unsplash
The ADB has signed loans totaling $160 million to finance two solar energy projects in southeastern Azerbaijan. The 445 MW Bilasuvar and 315 MW Neftchala solar power plants will be developed by Masdar in collaboration with Socar Green, a subsidiary of Socar.
The Azerbaijani Ministry of Energy approved the construction of the two solar energy projects in June. The parties signed investment agreements in October 2023, followed by power purchase agreements, transmission connection agreements and land lease agreements.
The ADB’s financing package includes up to $48 million for the Bilasuvar power plant and up to $33.5 million for the Neftchala power plant from ordinary capital resources.
The Leading Asia’s Private Infrastructure Fund 2, managed by the ADB and financed by the Japan International Cooperation Agency, will provide up to $46 million for the Bilasuvar power plant and up to $32 million for the Neftchala power plant.
Azerbaijan aims to generate 30% of its energy capacity from renewable energy sources by 2030. According to figures from the International Renewable Energy Agency (IRENA), the country’s total solar capacity stood at 282 MW at the end of 2023.
Earlier this month, a groundbreaking ceremony took place for a 240 MW solar power plant in southwestern Azerbaijan.
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