UAE-based global renewable energy company Abu Dhabi Future Energy Company (Masdar), which is fully owned by Abu Dhabi’s Mubadala Investment Company, has signed an agreement with Azerbaijan’s Ministry of Energy to design, finance, build, and operate a 200-megawatt (MW) utility-scale solar photovoltaic (PV) project, constructionweekonline.com reported.

The financial close on the project is projected for end-2020, with commercial operations expected to be achieved in 2022.

The solar project, which is located 75km southwest of Azerbaijan’s capital of Baku, supports the nation’s target to produce 30% of its domestic power needs from renewable energy sources by 2030.

In the presence of the Prime Minister of the Republic of Azerbaijan, Ali Asadov, the deal was inked by the nation’s Minister of Energy, Parviz Shahbazov; and the chief executive officer of Masdar, Mohamed Jameel Al Ramahi.

Commenting on the agreement, Shahbazov said: “The diversification of electricity production via utilising renewable energy sources is one of the main priorities of focus by the President of the Republic of Azerbaijan. By signing this agreement, from now on, we are starting a new phase in the renewable energy sector of Azerbaijan.

Shahbazov added: “Our cooperation with Masdar, as one of our first foreign partners in the renewable energy sector, will make a contribution to achieve our goals regarding sustainable and clean energy, and facilitate to deliver our shared interests.”

Sharing his thoughts on the deal, Al Ramahi, said: “As a global leader in the development of commercially viable renewable energy projects in more than 30 countries, Masdar is honoured to partner with the Republic of Azerbaijan to develop the landmark 200MW solar project.”

Masdar’s expanding renewable energy portfolio, which includes solar, wind, and waste-to-energy, as well as Masdar’s sustainable real estate investments, battery electric storage, and other energy-efficiency technologies will be on display at the Masdar stand during the World Future Energy Summit (WFES) to be held on January 13-16, 2020, as part of the Abu Dhabi Sustainability Week.

To recap, on 30 November 2019, the Abu Dhabi Future Energy Company signed a “joint development agreement” with the Armenian National Interests Fund (ANIF) to finance the construction of large solar power plants in Armenia that would ease the country’s dependence on natural gas and nuclear power, reported the Armenian Radio Free Europe.

In a joint statement, Masdar and ANIF said the deal envisages the launch of solar energy projects in Armenia with a total capacity of 400 megawatts. This would nearly match the design capacity of the Metsamor nuclear plant generating more than one-third of the South Caucasus nation’s electricity. They said this will require between $300 million and $320 million in investments, the bulk of which will presumably be made by Masdar (Caucasus Watch reported).