The Asian Development Bank (ADB) and Abu Dhabi Future Energy PJSC (Masdar) partnered to develop two large-scale solar power plants in Azerbaijan.
These projects, located in Bilasuvar and Neftchala districts, are less than 140 km from Baku and aim to boost clean energy capacity.
Boosting Solar Energy and Reducing Emissions
By adding 760 megawatts of renewable energy capacity, the two solar projects will triple Azerbaijan’s solar energy production. The projects will significantly promote sustainable energy development in the area once operational, offsetting about 725,000 tons of carbon dioxide emissions each year.
The financing for these projects totals $160 million. Up to $48 million will come from ADB’s regular capital resources for the Bilasuvar plant, while $33.5 million will go to the Neftchala facility.
Additionally, Leading Asia’s Private Infrastructure Fund 2 (LEAP2), managed by ADB, will contribute $46 million to the Bilasuvar plant and $32 million to the Neftchala plant.
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Suzanne Gaboury, ADB’s Director General for Private Sector Operations said, “By harnessing Azerbaijan’s solar potential, we are enhancing the country’s energy security and providing a model for sustainable development that can be replicated across the region.”
She added, “The Bilasuvar and Neftchala power plants clearly demonstrate the potential of the country’s dynamic energy sector to catalyze the private sector and mobilize international investors.”
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The European Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank will fund the projects. SOCAR Green, an Azerbaijan State Oil Company division, will co-sponsor and implement renewable energy projects to reduce emissions.
LEAP2, a $1.5 billion fund supported by the Japan International Cooperation Agency, targets sustainable infrastructure projects in ADB member countries. Its involvement highlights the importance of global collaboration in promoting renewable energy.