Abu Dhabi Future Energy Company – Masdar and Azerbaijan Green Energy Company (AGEC) have signed a collaboration agreement to explore new renewable energy projects in Azerbaijan, as the UAE clean energy company expands its presence in the country.

The agreement was signed in the presence of Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Adviser, and Azerbaijan President Ilham Aliyev.

It was signed by Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, and Khayala Naghiyeva, Deputy Chairman of AGEC.

Under the agreement, Masdar and AGEC will assess the expansion of Masdar’s 230-megawatt (MW) Garadagh Solar PV project by at least 350MW.

The expansion could also include a battery energy storage system with capacity of up to 200 megawatt-hours (MWh).

The companies will also explore a 100MW round-the-clock renewable energy project, building on Masdar’s experience in combining renewable generation with large-scale battery storage to provide continuous electricity.

Separately, Masdar and SOCAR Green, a wholly owned subsidiary of Azerbaijan’s state oil company SOCAR, have reached financial close on the 315MW Neftchala Solar PV project.

The project is being developed with Azerbaijan’s Ministry of Energy, with financing from the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development and the Asian Development Bank.

Located in Azerbaijan’s Neftchala district, the solar project is expected to generate more than 686 million kilowatt-hours of renewable electricity annually, enough to supply about 140,000 homes.

It is also expected to avoid approximately 280,000 tonnes of carbon emissions each year.

Mohamed  Al Ramahi, Chief Executive Officer of Masdar, said: “Garadagh established a strong foundation for Masdar in Azerbaijan and demonstrated our ability to deliver large-scale renewable energy projects successfully. This agreement with AGEC gives us the opportunity to build on that track record by expanding the project, integrating battery storage and exploring round-the-clock renewable power. By combining our development, technical and operational expertise, we aim to deliver reliable, flexible energy solutions that support Azerbaijan’s growing power needs.”

Mir Jamal Pashayev, Chief Executive Officer of Azerbaijan Green Energy Company, said: “AGEC represents our long-term commitment to supporting Azerbaijan’s transition toward a more diversified, secure and sustainable energy future. We believe that the development of renewable energy is not only an investment opportunity, but also an important contribution to the country’s economic resilience, energy security and future generations. We see significant potential for collaboration with leading global energy companies, and we are particularly pleased to explore opportunities for cooperation with Masdar, one of the world’s leading renewable energy companies. We believe that combining international expertise with Azerbaijan’s strong renewable energy potential can accelerate the development of high-quality projects. Through AGEC, we are committed to supporting the development of high-quality renewable energy projects and building strong partnerships that create lasting value for Azerbaijan.”

Khayala Naghiyeva, Deputy Chairman of Executive Board of AGEC, said: “AGEC is pleased to partner with Masdar in advancing the next phase of Azerbaijan’s renewable energy development. This collaboration brings together Masdar’s global expertise and AGEC’s local investment and development capabilities to explore projects that can deliver not only additional clean energy capacity, but greater flexibility, reliability and energy security. The proposed expansion of the Garadagh Solar PV project and the exploration of round-the-clock renewable power in Nakhchivan represent an important step toward integrating renewable generation with energy storage and developing more resilient energy solutions for Azerbaijan. We look forward to turning these opportunities into bankable, high-impact projects that contribute to Azerbaijan’s long-term sustainable growth.”

Masdar entered Azerbaijan’s renewable energy market with the 230MW Garadagh Solar PV project, inaugurated in 2023.

The facility generates around 500 million kWh annually and supplies electricity equivalent to the needs of more than 110,000 homes.

Alongside Neftchala, Masdar is developing the 445MW Bilasuvar solar project and the 240MW Absheron-Garadagh onshore wind project with SOCAR Green.

These developments bring Masdar’s total planned renewable energy capacity in Azerbaijan to more than 1.2GW.

The proposed round-the-clock project would draw on Masdar’s expanding experience with renewable energy and battery storage.

In Abu Dhabi, the company is developing a $6.1 billion project with Emirates Water and Electricity Company that combines 5.2GW of solar capacity with a 19GWh battery system to provide up to 1GW of renewable baseload power around the clock.

Masdar says its global portfolio exceeds 65GW across solar, wind, battery storage and hybrid technologies, with a target of reaching 100GW of renewable energy capacity by 2030. -OGN/TradeArabia News Service