ABU DHABI, 5th June, 2022 (WAM) -- Masdar, one of the world's leading renewable energy companies, has signed implementation agreements with the Ministry of Energy of the Republic of Azerbaijan to develop clean and renewable energy projects in the country with a combined confirmed capacity of 4,000 megawatts (MW) as an exclusive concession.
Under the agreements, Masdar also has the right to develop an additional 6,000 MW as a second phase, bringing the total production capacity of these projects to 10,000 MW - the largest such signing in Azerbaijan's history.
Masdar signed two implementation agreements, one relating to the development of onshore wind projects with a capacity of 1,000 MW, and 1,000 MW of solar photovoltaic (PV) projects. The second agreement covers integrated offshore wind and green hydrogen projects with a capacity of 2,000 MW.
The implementation agreements were signed by Parviz Shahbazov, Azerbaijan's Minister of Energy, and Fawaz Al Muharrami, Acting Executive Director of Masdar Clean Energy, signing on behalf of Masdar, at an event in Shusha, held as a special session of Baku Energy Week.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Chairman of Masdar, said, "The 4,000 MW of renewable energy projects announced today reinforce the close relationship between the United Arab Emirates and Azerbaijan and are a testament to our shared commitment to progressive climate action. These clean energy projects also demonstrate the valuable economic opportunities of the energy transition and will contribute to the energy diversification and energy security of Azerbaijan. Today's announcement also underscores the UAE and Masdar's position as a global leader in renewable energy, as we progress our strategy toward a portfolio of at least 100 GW globally."
Shahbazov said, "Today we are going to sign mega projects with Masdar in accordance with the green energy course of the President of Azerbaijan, which defines renewable energy sources as a strategic priority for the country's development. These 4,000 MW solar, wind and green hydrogen projects, being the largest renewable energy production capacity in the region and in our energy history, provide ample opportunities for the development of Azerbaijan as a green growth country, green energy producer and exporter, as well as allow for involving multibillion-dollar green investment."
The agreement for onshore wind and solar projects includes measures to study and strengthen the network and implement processes for the export of electricity. The second agreement includes measures to create wind power for production and export purposes, decarbonisation, hydrogen production and export.
At the same event, Masdar also signed a Memorandum of Understanding (MoU) with the State Oil Company of Azerbaijan Republic (SOCAR) for the joint development of renewable energy sources.
In March, Masdar's CEO Mohamed Jameel Al Ramahi attended the groundbreaking ceremony for Masdar's 230 MW Garadagh Solar PV Plant in Azerbaijan. The plant, expected to start commercial operation in 2023, will help to generate half a billion kilowatt-hours of electricity annually, enough to meet the needs of more than 110,000 homes, and will reduce emissions by more than 200,000 tonnes a year, while also creating valuable jobs.