UAE Masdar to build solar plants and wind farm in Azerbaijan

Abu Dhabi state-owned renewable energy firm Masdar announced plans to build two solar plants and a wind farm in Azerbaijan with a total capacity of 1 gigawatt. The agreements were signed on Tuesday with Azeri state oil firm Socar.

Masdar will hold a 75% stake in the projects, while Socar will hold 25%, according to Maryam Al Mazrouei, Masdar's head of development and investment for the CIS region. The 445 MW Bilasuvar Solar PV Project and the 315 MW Neftchala Solar PV Project are expected to become operational by late 2026 or early 2027. The 240 MW Absheron-Garadagh Onshore Wind Project is set to be operational by the end of 2027.

The announcement coincides with preparations for the COP29 climate summit, which will be hosted in Baku, Azerbaijan's capital, in November. Sultan Al Jaber, COP28 President and chairman of Masdar, emphasized the UAE's commitment to enhancing green growth and promoting sustainable development globally.

At COP28, nearly 200 countries agreed to transition away from fossil fuels. Al Jaber reiterated that the UAE climate fund Alterra aims to raise over $200 billion in investments over the next six years. Launched in December, the $30 billion fund targets attracting $250 billion in institutional investments by 2030.

Alterra was established by Lunate, an Abu Dhabi alternative investment manager owned by its senior management and Chimera Investment, part of a business empire overseen by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser.

Inputs from Reuters