Masdar has put pen to paper on an agreement with the Ministry of Energy of the Republic of Azerbaijan to design, finance, build and operate a 200MW utility-scale solar photovoltaic (PV) project.
In the presence of Ali Asadov, the Prime Minister of the Republic of Azerbaijan, the implementation agreement was signed at a ceremony held in Baku by Parviz Shahbazov, Minister of Energy of the Republic of Azerbaijan, and Mohamed Jameel Al Ramahi, Masdar CEO.
The signing ceremony was also attended by Abdalla Jasim Al Shamsi, deputy head of mission at the Embassy of the UAE in Azerbaijan.
Under the agreement, the project will be located 75 kilometres southwest of Baku.
Financial close on the project is targeted for the end of 2020, while commercial operation is expected to be achieved in 2022.
Shahbazov said: “The diversification of electricity production via utilising renewable energy sources is one of the main priorities of focus by the President of the Republic of Azerbaijan.
“By signing this agreement, from now on, we are starting a new phase in the renewable energy sector of Azerbaijan.
“Our co-operation with Masdar, as one of our first foreign partners in the renewable energy sector, will make a contribution to achieve our goals regarding sustainable and clean energy, and facilitate to deliver our shared interests.”
The solar project supports Azerbaijan’s target of producing 30% of its domestic power needs from renewable energy sources by 2030.
Al Ramahi added: “Today’s signing marks a major step forward for Azerbaijan and its ambitions to diversify its energy mix.
“As a global leader in the development of commercially viable renewable energy projects in more than 30 countries, Masdar is honoured to partner with the Republic of Azerbaijan to develop the landmark 200MW solar project.
“With more than a decade of experience, we are also proud to be supporting the government of Azerbaijan and its clean energy transition.”