Masdar and SOCAR Break Ground on 1GW Renewable Energy Projects in Azerbaijan, Marking a Major Milestone in Green Energy Expansion

Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s leading clean energy company, and the State Oil Company of Azerbaijan (SOCAR) have commenced construction on three significant solar and wind projects in Azerbaijan, totaling 1 gigawatt (GW) in capacity.

The groundbreaking ceremony, held during the opening of Baku Energy Week, underscores Masdar’s enduring partnership with Azerbaijan. The event was attended by notable figures, including Azerbaijan’s President HE Ilham Aliyev and UAE’s Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President HE Dr. Sultan Al Jaber. Also present were Azerbaijan’s Minister of Energy HE Parviz Shahbazov, Minister of Economy and Chairman of SOCAR’s Supervisory Board HE Mikayil Jabbarov, and Masdar CEO Mohamed Jameel Al Ramahi.

The projects include the 445MW Bilasuvar Solar PV Project, the 315MW Neftchala Solar PV Project, and the 240MW Absheron-Garadagh Onshore Wind Project. Agreements for these projects, covering power purchase, transmission connection, and land leases, were finalized in October 2023.

During Baku Energy Week, Masdar and SOCAR also signed a Shareholder Agreement for these projects.

“We are proud to partner with Azerbaijan on this significant expansion of its renewable energy capacity,” said HE Dr. Sultan Al Jaber. “This collaboration supports Azerbaijan’s energy diversification, creating new industries and jobs, and fostering sustainable economic growth. Tripling renewable energy capacity by 2030 is a key goal of the UAE Consensus, and partnerships like this are crucial for a just and equitable energy transition.”

Azerbaijan’s Minister of Energy HE Parviz Shahbazov remarked, “Azerbaijan and the UAE have achieved another historic success through our brotherhood, friendship, and strategic partnership. The foundation of these 1 GW capacity stations is a first for green energy in Azerbaijan and signifies our solidarity and commitment to the energy transition. These plants will generate 2.3 billion kWh annually, saving over 500 million cubic meters of natural gas and preventing more than 1 million tons of carbon emissions.”

HE Mikayil Jabbarov, Azerbaijan’s Minister of Economy and SOCAR’s Supervisory Board Chairman, highlighted the significance of these projects, stating, “This groundbreaking represents a milestone in Azerbaijan’s energy journey. Our partnership with Masdar exemplifies the collaborative spirit needed to drive impactful change in the energy sector, setting a new standard for green energy projects.”

Masdar CEO Mohamed Jameel Al Ramahi emphasized Azerbaijan’s strategic importance to Masdar, noting, “With this 1GW wind and solar project groundbreaking, we advance our goal of developing up to 10GW of clean energy in Azerbaijan by 2030. Following the inauguration of the 230MW Garadagh solar plant, the largest in the region, we continue to support Azerbaijan’s clean energy vision ahead of COP29 and beyond.”

This groundbreaking follows the completion of the 230MW Garadagh solar plant in October 2023, Azerbaijan’s first foreign investment-based independent solar project and the largest in the region.

Founded in 2006, Masdar aims to achieve a renewable energy portfolio capacity of 100GW by 2030, in line with the UAE Consensus target to triple global renewables capacity by the end of the decade, and aspires to be a leading producer of green hydrogen by the same year.