UAE-based developer, Masdar has signed a deal to develop a utility-scale solar project in the Republic of Azerbaijan. As per the deal, the company will be responsible for developing, financing, constructing, and operating the plant, which is 9 km northwest of the Alat settlement in Azerbaijan. The implementation agreement for the project was signed in January 2020 by Masdar and the plant is expected to start commercial operations in early 2023.
Azerbaijan is targeting to increase its installed power capacity to 30 per cent from renewable sources by 2030, in the pursuit to diversify its economy and reduce greenhouse gas emissions. The country has an estimated solar energy potential of 23,040 MW as per the International Renewable Energy Agency. The current project is expected to generate 0.5 billion kWh of electricity annually which will power about 110,000 homes and also reduce emissions by 200,000 tonnes a year.
Earlier this month, Masdar signed an agreement with the Government of Uzbekistan to extend the capacity of its utility-scale wind farm project up to 1.5 GW. The current capacity of the wind farm is 500 MW and the expansion is set to attract foreign direct investment of over $600 million. The project is located in the Zarafshan district of the Navoi region of the country, and extending its capacity will help Uzbekistan achieve its objectives of adding up to 3 GW of wind energy and meeting 25 per cent of its electricity needs from renewable sources by 2030.