MASDAR advances renewable energy partnership in Azerbaijan [EXCLUSIVE]

In recent years, Azerbaijan has witnessed substantial investment in the development and restoration of its energy infrastructure, marking a notable shift towards renewable energy sources. With a growing interest in alternative energy fields, foreign companies, notably the esteemed UAE-based company Masdar, have played a pivotal role in driving this transformation. Masdar's unwavering commitment to advancing the concept of clean energy in Azerbaijan has been instrumental in accelerating progress in this sector.

A significant milestone in this collaboration was the successful operation of the Garadagh Solar Power Station (GES) last year, marking the commencement of a new era in Azerbaijan's energy landscape. Notably, GES stands as the first power station in the country to be built with substantial foreign investment, signifying a landmark achievement in Azerbaijan's renewable energy journey.

Further underscoring this partnership, the recent groundbreaking ceremony held during the Baku Energy Week on June 4th saw the initiation of three ambitious projects: the Neftchala and Bilasuvar Solar Power Plants, along with the Absheron-Garadagh Wind Power Plant, in collaboration with Masdar. These projects, with a combined installed capacity of 1000 MW, herald a significant leap forward in Azerbaijan's renewable energy capacity.

Moreover, as part of the Baku Energy Week, pivotal Shareholder Agreements were inked between the State Oil Company of the Republic of Azerbaijan (SOCAR) and Masdar for three renewable energy ventures, encompassing both wind and solar power plant projects across Azerbaijan.

In an exclusive interview with Azernews, Maryam Al Mazrouei, Head of Development and Investment at Masdar, delves into the company's vision and strategic initiatives in Azerbaijan, shedding light on their collaborative efforts to drive sustainable energy development in the region.

Q: What were the key agreements signed between MASDAR and Azerbaijan following the inauguration of the Garadagh Solar Park?

A: Azerbaijan holds a pivotal position as a strategic partner. Last October, we celebrated the inauguration of the region's largest operational solar plant, the Garadagh Solar Park, boasting a capacity of 230 megawatt units. Concurrently, we sealed an investment agreement for three additional projects, including two Solar PV projects and one Onshore Wind Project. Notably, these agreements and the inauguration ceremony were graced by the presence of esteemed dignitaries, including President Ilham Aliyev of Azerbaijan and Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President.

Regarding the recent announcement of a one-gigawatt project, it underscores our successful partnership with Azerbaijan and our key stakeholders, the Ministry of Energy and "Azerenergy" OJSC. We are enthusiastic about expanding our presence in this strategic market, as demonstrated by our commitment to the Garadagh solar PV project.

In 2022, we further solidified our collaboration through the signing of two implementation agreements, a significant milestone achieved during the Baku Energy Week in the historic city of Shusha. These agreements encompass a comprehensive 10-gigawatt program, with the initial phase targeting four gigawatts. The groundbreaking event held yesterday, attended by President Ilham Aliyev and Sultan Ahmed Al-Jaber, Minister of Industry and High Technologies of the UAE and Chairman of the Board of Directors of Masdar, marked the commencement of this ambitious program. Notably, the first phase covers a range of technologies, including solar PV, onshore wind, offshore wind, and green hydrogen potential, reflecting our commitment to advancing diverse renewable energy solutions.

Q: How does MASDAR envision its future collaborations and projects in Azerbaijan, particularly in the context of renewable energy development?

A: As you are aware, the government has set a target to achieve 30 percent renewable energy by 2030, and MASDAR is fully aligned with this vision. The United Arab Emirates and the Republic of Azerbaijan share a strong relationship, extending even to our leadership. Our discussions with the Ministry of Energy have been conducted bilaterally, reflecting a collaborative approach where we function as a unified team. In fact, I have been privileged to be considered as part of the Azerbaijani team on occasions. We believe that successful implementation of renewable energy initiatives hinges on collaboration between MASDAR, the Ministry of Energy, and Azernenergy.

Transparency is a cornerstone of our approach, as we strive to maintain credibility with all stakeholders. It is worth noting that the recent one-gigawatt project, particularly the Karadagh initiative, is 100 percent developed by MASDAR. However, we are also collaborating closely with our strategic partner SOCAR, who holds shares in these projects. This partnership exemplifies our commitment to working hand in hand with local stakeholders to drive renewable energy development in Azerbaijan.

Q: How does MASDAR's global experience and expertise in clean energy contribute to its partnership with Azerbaijan?

A: When discussing MASDAR, it's important to highlight our extensive experience as one of the largest clean energy developers worldwide. With projects spanning more than 40 countries across six continents, we have established ourselves as leaders in the field. Currently, our portfolio encompasses 20 gigawatts of renewable energy capacity, including operational, under-construction, and under-development projects.

From MASDAR's perspective, we have a clear mandate to increase our renewable energy portfolio capacity to 100 gigawatts by 2030. Azerbaijan holds a key position as a strategic market for us. Last year, we were engaged in projects totaling 230 megawatts. This year, that figure has increased significantly to 1.2 gigawatts, showcasing our commitment to the country's renewable energy goals.

We remain dedicated to working closely with the Ministry of Energy and other key stakeholders to expand our presence and contribute to Azerbaijan's energy transition. Notably, Azerbaijan has set ambitious targets, aiming not only to achieve 30 percent renewable energy by 2030 but also to export green electricity to neighboring countries and potentially to Europe. MASDAR is eager to participate in these initiatives and collaborate with the Ministry of Energy to support the export of green energy to neighboring nations, once technical feasibility studies are completed and finalized.

Q: What are the broader implications of MASDAR's investments and projects in Azerbaijan for regional energy dynamics and sustainability efforts?

When considering MASDAR, our mandate is to develop renewable energy projects across the globe. We are highly active across all six continents, with a particular focus on the region but also extending to other areas. Our primary technological focuses include solar PV, onshore wind, and offshore wind. However, we also explore other avenues such as waste-to-energy, geothermal, and energy storage technologies like batteries.

I would emphasize that we do not limit ourselves when it comes to technologies or countries. Wherever we operate, we strive to expand our presence and actively seek opportunities in new markets.