$21 million loan to construct landmark solar power plant in Azerbaijan signed

ADB and and Masdar Azerbaijan Energy Limited Liability Company (MAE) signed a $21.4 million loan agreement to finance Masdar’s 230-megawatt (MW) solar power plant near Alat settlement in Azerbaijan. It is the first significant private sector renewables investment in Azerbaijan’s history with long-term international financing from development finance institutions. It is ADB’s first renewable energy project in Azerbaijan, and it is expected to be a landmark transaction with a demonstration effect across the energy sector. 

Being a fossil-rich country, Azerbaijan is heavily reliant on fossil fuels, with most of its electricity supplied by natural gas. The new solar power plant will generate up to 558 gigawatt-hours of clean energy annually from the first year of operation, avoiding up to 265,000 tons of annual carbon emissions. MAE will provide its energy output to the Azerenerji Joint Stock Company under a 23-year power purchase agreement. Read more.