Abu Dhabi Future Energy Company ( Masdar ) and Socar Green have reached financial close for the 445-megawatt Bilasuvar and 315MW Neftchala solar projects in Azerbaijan.

The European Bank for Reconstruction and Development ( EBRD ), the Asian Development Bank ( ADB ), and the Asian Infrastructure and Investment Bank ( AIIB ) are financing the two solar projects, with the total cost expected to be more than US$600 million. The AIIB is lending US$160 million.

The agreements were signed on the sidelines of COP29 in Baku. They were witnessed by Azerbaijan’s energy minister Parviz Shahbazov, Masdar chief operating officer Abdulaziz Alobaidli, Socar vice president Afgan Isayev, and Harry Boyd-Carpenter, managing director, climate strategy and delivery, at EBRD.

Masdar and Socar Green broke ground on the Bilasuvar and Neftchala solar parks during a ceremony at Baku Energy Week in June 2024. Construction on the projects is due to be completed by the first quarter of 2027.

Established in 2024, Socar Green is a wholly owned subsidiary of Socar, a global energy company headquartered in Azerbaijan. Positioned at the forefront of the nation's transition to renewable energy, Socar Green drives the implementation of clean energy initiatives, including large-scale solar, wind, and green hydrogen projects.

Masdar is heavily involved in Azerbaijan’s energy transition. It has signed agreements to develop onshore wind and solar projects and integrated offshore wind and green hydrogen projects with a total combined capacity of 10 gigawatts. Its first project in Azerbaijan, the 230MW Garadagh solar plant, was inaugurated in October last year.

"We are very pleased to sign financing agreements for these two major solar projects in Azerbaijan, so soon after completing the largest solar plant in the country in Garadagh last year. Azerbaijan is a key strategic market for us, and we are committed to helping the country achieve its ambitious clean energy targets," says Masdar chief executive officer Mohamed Jameel Al Ramahi. 

Since its establishment in 2006, Masdar has developed and partnered in projects in over 40 countries, with a mandate to increase its renewable energy portfolio capacity to 100GW by 2030 and to become a leading producer of green hydrogen by the same year.