Masdar, an energy company based in the UAE has inked agreements with the State Oil Company of the Republic of Azerbaijan (SOCAR) to develop 4 GW of wind and solar power capacity integrated with green hydrogen projects. The agreements were inked on the sidelines of Abu Dhabi Sustainability Week, a worldwide platform to accelerate sustainable development organised by Masdar. SOCAR seeks to increase Azerbaijan’s energy security as the country’s integrated oil and gas company.
The projects are a part of Azerbaijan’s attempt to meet 30 per cent of its domestic energy needs with renewables by 2030. Along with economic diversification, the country aims to reduce emissions of greenhouse gases. The 230 MW Garadagh solar power plant in Azerbaijan, which will produce 500 million kilowatt-hours of electricity annually, is currently being built by Masdar.
Earlier this month, Masdar signed an agreement with Kyrgyzstan’s Ministry of Energy to establish a 1 GW renewable energy project pipeline in the region. A 200 MW solar photovoltaic (PV) facility with the capacity would be the first project the company develops, and it would be online in 2026. The MoU that the two sides signed in April 2022 serves as the foundation for the deal.
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. Masdar has been rapidly expanding its reach and building its portfolio across many of such emerging but highly attractive markets in Asia and Middle East like Turkmenistan, Uzbekistan, Jordan, Azerbaijan and others.