ADB and Masdar Sign $160 Million Deal for Azerbaijani Solar Plants
Deal News | Nov 16, 2024 | Asian Development Bank
The Asian Development Bank (ADB) and Abu Dhabi Future Energy PJSC (Masdar) have signed a $160 million financing agreement to build two of the largest solar power plants in Azerbaijan, located in Bilasuvar and Neftchala districts. Expected to add 760 megawatts of clean energy, the projects will offset approximately 725,000 tons of CO2 emissions annually, tripling Azerbaijan’s solar energy capacity. This initiative, funded in part by ADB’s ordinary capital resources and the Leading Asia's Private Infrastructure Fund 2 (LEAP2) with contributions from other co-lenders like the Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development, exemplifies a strategic move towards enhancing energy security and promoting sustainable development in the region. Additionally, SOCAR Green, an entity of the State Oil Company of Azerbaijan, will co-sponsor the projects, implementing renewable initiatives and creating carbon reduction roadmaps.
Sectors
- Renewable Energy
- Finance
- Infrastructure
Geography
- Azerbaijan – The location where the solar power plants are being built, enhancing the country's renewable energy sector.
- Asia-Pacific – Represents the region where ADB focuses its development and sustainability efforts.
- Abu Dhabi, UAE – Location of Masdar, a partner in the renewable energy projects.
Industry
- Renewable Energy – The primary focus of the article, discussing the establishment of solar power plants to enhance renewable energy capacity in Azerbaijan.
- Finance – The article involves the financing and funding aspects related to ADB and LEAP2's investments in the solar projects.
- Infrastructure – Involves the development of physical solar infrastructure in Azerbaijan with international investment support.
Financials
- $160 million – Total financing package for the construction of the two solar power plants.
- $48 million – Investment by ADB for the Bilasuvar power plant.
- $33.5 million – Investment by ADB for the Neftchala power plant.
- $46 million – LEAP2 investment for the Bilasuvar power plant.
- $32 million – LEAP2 investment for the Neftchala power plant.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank (ADB) | Lender/Project financier | Company | A multilateral development bank committed to fostering inclusive and sustainable growth in the Asia-Pacific region. |
| Abu Dhabi Future Energy PJSC (Masdar) | Co-sponsor/Project Partner | Company | A leading company in global renewable energy investments, owned by the Government of Abu Dhabi. |
| SOCAR Green | Co-sponsor/Implementer | Company | A subsidiary of SOCAR focusing on renewable energy projects and carbon reduction in Azerbaijan. |
| Leading Asia's Private Infrastructure Fund 2 (LEAP2) | Co-funder | Company | An ADB-managed fund supporting sustainable private infrastructure projects in Asia. |
| Asian Infrastructure Investment Bank | Co-lender | Company | An international financial institution focused on supporting infrastructure development in Asia. |
| European Bank for Reconstruction and Development | Co-lender | Company | An international financial institution supporting projects in sustainable or transition economies. |