(MENAFN- EIN Presswire)
BAKU, AZERBAIJAN (16 November 2024) - The Asian Development bank (ADB) and Abu Dhabi Future energy PJSC (Masdar) signed two loans to build two of the largest solar power plants in Azerbaijan. The plants will be located in Bilasuvar and Neftchala districts, less than 140 kilometers from the capital, Baku.
Once completed, the solar power plants are expected to add 760 megawatts of clean energy capacity, offsetting about 725,000 tons of carbon dioxide emissions per year and tripling the country's solar energy capacity.
The financing package, totaling $160 million, comprises up to $48 million for the Bilasuvar power plant and up to $33.5 million for the Neftchala power plant, funded from ADB's ordinary capital resources. The Leading Asia's Private Infrastructure Fund 2 (LEAP2) provided up to $46 million for the Bilasuvar power plant and up to $32 million for the Neftchala plant, both of which will be administered by ADB.
“By harnessing Azerbaijan's solar potential, we are enhancing the country's energy security and providing a model for sustainable development that can be replicated across the region,” said ADB Director General for Private Sector Operations Suzanne Gaboury.“The Bilasuvar and Neftchala power plants clearly demonstrate the potential of the country's dynamic energy sector to catalyze the private sector and mobilize international investors.”
The Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development join ADB as co-lenders for the two solar power projects. Partnering with Masdar, SOCAR Green, a wholly owned subsidiary of the State Oil Company of Azerbaijan, co-sponsors these two projects. SOCAR Green will implement renewable energy projects and develop strategic road maps for reducing carbon emissions in the country.
LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB's developing member countries.
Established in 2006, Masdar is the Government of Abu Dhabi's primary vehicle for investing in global renewable energy and sustainable development projects. Masdar has an aggregate operational and under development generation capacity of more than 20 gigawatts from renewable energy projects worldwide and aims to expand its portfolio to 100 gigawatts by 2030.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members-49 from the region.
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