BAKU
Abu Dhabi Future Energy Company PJSC (Masdar), one of the leading renewable energy companies in the world, plans to invest $200 million in the construction of a solar power plant in Azerbaijan, the ex-Soviet country’s energy ministry said.
The plant will have a capacity of 230 megawatts and will generate 500 million kilowatts hours of electricity per year, saving 110 million cubic meters of gas and reducing greenhouse gas emissions in amount of 200,000 tonnes.
The station, that will be built by Masdar, will be located 75 km south-west of the capital Baku. It’s scheduled to be launched in 2023.
Azerbaijan’s energy ministry and Masdar signed a package of documents, including an investment agreement, energy purchase and sale agreement, and distribution grid connection agreement. The sides agreed that the project would be implemented on a build-own-operate basis.
According to the energy ministry, the technical potential for solar power in Azerbaijan is around 23,000 megawatts. The country’s 2,400 to 3,200 sunshine hours annually compare well internationally. So does its solar intensity, estimated at 1,500 kWh/m2 to 2,000 kWh/m2. The best resources are in the central river valleys and the north and northwest.
Azerbaijan is yet to tap into its significant potential for renewable energy and energy efficiency, the International Energy Agency said. The government has, however, drafted several laws to that end which are pending approval. Higher ambition and more effort in renewable energy and energy efficiency will also help the country save natural gas and oil for exports and reduce its dependence on oil and gas sector.
Masdar, which is owned by Mubadala Investment Company, currently operates in more than 30 countries with a total renewable energy capacity of 10.7 gigawatts representing a combined investment of approximately $19.9 billion. It is also active in other former Soviet countries, including Uzbekistan, Armenia and Kazakhstan.