The Asian Development Bank (ADB) and Masdar Azerbaijan Energy Limited Liability Company (MAE) signed a $21.4 million loan agreement to finance Masdar's 230-megawatt (MW) solar power plant near Alat settlement in Azerbaijan, Report informs, citing the Bank.
It is the first significant private sector renewables investment in Azerbaijan's history with long-term international financing from development finance institutions.
In April 2021, Masdar signed agreements to develop the Garadagh project, located 9 kilometers northwest of the Alat settlement, with the plant expected to start commercial operations in 2023. The project is co-financed by the European Bank for Reconstruction and Development, the Japan International Cooperation Agency, and the Abu Dhabi Fund for Development.
"The development of this solar power project in Azerbaijan will be a key step forward in the country's green growth journey," said the Director of Infrastructure Finance for South Asia, Central Asia, and West Asia of ADB's Private Sector Operations Department, Shantanu Chakraborty. "The plant will spur further private sector investment in the renewables sector in Azerbaijan and help the government achieve its target of 30% of renewable energy share in total generation capacity by 2030."
"Masdar has taken a leading role in transforming the energy sector in Azerbaijan through this green energy project. We are thankful to ADB and other development financial institutions for playing a key role in its financing," said Masdar's Team Leader for Development & Investment, Maryam Rashed Al Mazrouei.