UAE-based renewable energy company Masdar has signed an agreement with Azerbaijan’s Ministry of Energy to build a 200MW solar photovoltaic (PV) project in Azerbaijan.
As per the terms of the contract, the company will be responsible for design, finance, build and operate the solar project which will be situated 75km southwest of Baku.
According to Masdar, the project is expected to support the country’s aim of producing 30% of its domestic power needs from renewable energy sources by 2030.
Masdar CEO Mohamed Jameel Al Ramahi said: “Today’s signing marks a major step forward for Azerbaijan and its ambitions to diversify its energy mix.”
The company expects to finalise the financial aspects of the project by the end of the year while the commercial operations are slated to start in 2022.
Azerbaijan energy minister Parviz 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 cooperation 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.”
In November last year, Masdar signed a power purchase agreement (PPA) and Government Support Agreement (GSA) with the Government of the Republic of Uzbekistan to build a 100MW solar plant in Uzbekistan.
Under the agreement, the renewable energy company will be responsible for the design, finance and the construction of the solar project.
Work on the project will begin in the second quarter of 2020 while the commissioning is expected to take place in the second quarter of 2021.
The renewable energy company has acquired an undisclosed stake in Indian renewable power producer Hero Future Energies (HFE).
