UAE’s Masdar company will commission a 200 MW solar power plant in Azerbaijan in 2022, local media reported, citing Dubai Chamber in Azerbaijan.
“As you know, Masdar, one of the world's leading companies in the field of renewable energy sources, has signed an agreement with Azerbaijani Ministry of Energy of on the development, financing, construction and operation of a 200-megawatt solar photovoltaic power plant. The station is expected to be launched in 2022,” the Dubai Chamber noted.
The Chamber considers the contract signed with Masdar to be a landmark partnership that will further expand bilateral cooperation between the UAE and Azerbaijan.
Note that the Ministry of Energy signed contracts with Saudi Arabia’s ACWA Power and UAE’s Masdar on January 9, 2020. Under the terms of the agreements, ACWA Power will build a 240 MW wind power plant, and Masdar 200 MW will build a solar power plant in Azerbaijan as part of the pilot project.
Annual electricity production at these stations is projected at 1.4 billion kWh. The volume of investments under these projects is expected to exceed $300 million. The entire amount of financing will be undertaken by the companies. Earlier, ACWA Power informed that investments in the construction of a wind farm will amount to $200 million.
Note that according to the presidential order “On Accelerating Reforms in the Energy Sector” signed in 2019, partnerships were established with nine international energy companies and intensive discussions were held in order to expand the use of renewable energy sources. The ACWA Power and Masdar companies were selected from seven companies that submitted their proposals after a three stage selection process.
ACWA Power currently has a total installed capacity production portfolio of 30,200 megawatts, reaching 8,000 megawatts globally in renewable energy, and a $45 billion investment portfolio. As to Masdar company, currently it has a production portfolio in the field of renewable energy with a total installed capacity of 4,000 megawatts, and has so far invested $ 8.5 billion in this area.
Currently, 91.9 percent of electricity in Azerbaijan is produced from traditional sources of energy (natural gas), while 8.1 percent of electricity is produced from renewable sources. Taking the capacities of large hydroelectric power plants into account, the share of renewable energy sources in the production of electricity is 17 percent (1,276 MW).
According to estimates of the Energy Ministry, the potential of Azerbaijan’s renewable energy sources generating capacities is 26,000 MW. The Energy Ministry has set a task to increase the share of renewable energy sources in electricity production by 30 percent in 2030.