The Asian Development Bank (ADB) is evaluating potential investment in a 160-megawatt solar power plant in Azerbaijan’s Fuzuli district, according to Ali Malik, ADB’s Senior Investment Specialist, in an interview with Trend.
The project stems from an Implementation Agreement signed during COP29 in Baku in November 2024, involving Azerbaijan’s Ministry of Energy, China Energy Overseas Investment Co. Ltd., and SOCAR Green. “The initiative is in its early evaluation phase, but we’re keen to get involved,” Malik said.
During discussions, ADB’s infrastructure financing team reviewed the bank’s engagement in Azerbaijan’s energy, water, and financial sectors, covering ongoing projects, future plans, and favorable market conditions following the country’s recent credit rating upgrade.
Malik pointed out ADB’s heightened focus on private sector operations in Azerbaijan. “Over the past year, we’ve inked deals for two major solar projects: the ‘Banka’ and ‘Bilasuvar’ plants, totaling around 760 MW. Developed jointly by Masdar and SOCAR Green, these $600 million ventures received our long-term loans with essential guarantees. Azerenerji purchases the generated power,” he explained.
ADB is also partnering with Masdar on the 220 MW Gobustan wind energy project. “Masdar will handle financing, with completion anticipated by the end of next year,” Malik added.
Beyond renewables, Malik highlighted ADB’s role in wastewater treatment efforts, including serving as a transaction advisor for the Govsan wastewater treatment plant under a public-private partnership model, with an emphasis on desalination and wastewater initiatives.
The bank is deepening ties with Azerbaijan’s financial institutions and eyeing expansions in agriculture. “In 2024, we closed a deal with a local firm and are scouting further prospects,” he noted.
Overall, Malik described Azerbaijan’s market as highly appealing, especially for private sector financing in renewables and wastewater treatment. “With the improved credit rating, we see expanded lending and investment possibilities. Our current non-sovereign operations here total about $200 million, mostly in renewables, and we’re poised to grow that portfolio,” he concluded.
https://renewables.az/en/news/adb-shows-interest-in-solar-energy-project-in-azerbaijan-s-fuzuli-district