Azerbaijan’s Ministry of Energy has successfully completed its first renewable energy auction, awarding a 100 MW solar power project to Universal International Holdings. The Chinese company secured the contract with a competitive bid of $0.0354 per kWh and will be responsible for designing, financing, building, and operating the solar plant in the Garadagh region, located near Azerbaijan’s Caspian Sea coastline. The facility is expected to begin operations in 2027.
The auction was initiated in April 2024 with tender support from the European Bank for Reconstruction and Development (EBRD). Announced during COP29 in Baku, the project marks a milestone in Azerbaijan’s energy transition, aligns with the country’s broader decarbonization goals and is expected to enhance green energy production while fostering regional economic benefits.
Earlier this month, Masdar and SOCAR Green secured financing for two solar projects in Azerbaijan: 445 MWac in Bilasuvar and 315 MWac in Neftchala. The European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB) are backing the projects, with total costs exceeding $600 million.
REGlobal’s Views: With the global focus on energy transition and decarbonisation, new renewable energy investment hotspots are emerging across the globe, as these countries reduce their fossil fuel imports. Azerbaijan is attempting to meet 30 per cent of its domestic energy needs with renewables by 2030, and this auction is important to attract large international investors to the country’s untapped renewable energy market.
