Abu Dhabi-based Masdar has signed agreements with the Ministry of Energy of the Republic of Azerbaijan to develop clean and renewable energy projects in the country with a combined confirmed capacity of 4,000 megawatts (MW) as an exclusive concession, with the right to develop an additional 6,000 MW as a second phase, bringing the total production capacity of these projects to 10,000 MW – the largest such signing in Azerbaijan’s history.
Offshore wind & Green Hydrogen
Masdar signed two implementation agreements, one relating to the development of onshore wind projects with a capacity of 1,000 MW, and 1,000 MW of solar photovoltaic (PV) projects. The second agreement covers integrated offshore wind and green hydrogen projects with a capacity of 2,000 MW.
The implementation agreements were signed by Parviz Shahbazov, Minister of Energy, with Fawaz Al Muharrami, Acting Executive Director of Masdar Clean Energy, signing on behalf of Masdar, at an event in Shusha, held as a special session of Baku Energy Week.
The news comes just days after World Bank said that Azerbaijan, an oil and gas powerhouse, had immense potential for offshore wind power.
The country has a technical offshore wind resource of around 157GW – over 20 times the country’s current installed energy capacity, according to the World Bank.
The agreement for onshore wind and solar projects includes measures to study and strengthen the network and implement processes for the export of electricity. The second agreement includes measures to create wind power for production and export purposes, decarbonization, hydrogen production and export.
At the same event, Masdar also signed a Memorandum of Understanding (MoU) with the State Oil Company of Azerbaijan Republic (SOCAR) for the joint development of renewable energy sources.