ADB to Provide $160 Million to Finance 760 MW of Solar in Azerbaijan

Wedoany.com Report-Nov 20, The Asian Development Bank (ADB) has agreed on a $160 million financing package for two solar projects in southeastern Azerbaijan, totaling 760 MW. Abu Dhabi-based Masdar is co-developing the project with a subsidiary of State Oil Company of Azerbaijan (Socar).

The ADB has signed loans totaling $160 million to finance two solar projects in southeastern Azerbaijan. The 445 MW Bilasuvar and 315 MW Neftchala solar plants will be developed by Masdar in partnership with Socar Green, a subsidiary of Socar.

Azerbaijan’s Ministry of Energy approved the construction of the two solar projects in June. The parties signed investment agreements in October 2023, followed by power purchase agreements, transmission connection deals, 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 its ordinary capital resources.

The Leading Asia’s Private Infrastructure Fund 2, managed by the ADB and funded 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 plant.

Azerbaijan aims to generate 30% of its energy capacity from renewables by 2030. The country’s total solar capacity reached 282 MW at the end of 2023, according to figures from the International Renewable Energy Agency (IRENA).

Earlier this month, a groundbreaking ceremony took place for a 240 MW solar facility in southwestern Azerbaijan.