BAKU, Azerbaijan, September 22. The UAE's Masdar company will invest $1.2 billion in projects in Azerbaijan, Maryam Al Mazrouei, Head of Business Development and Investment for the CIS region at Masdar, said at the 1st Azerbaijan International Investment Forum held in Baku, Trend reports.
She recalled that Masdar implemented the first large-scale utility renewable energy project in Azerbaijan, which has now been operating for almost two years.
"This is the 230-megawatt Garadagh Solar Power Plant. During Baku Energy Week, we signed a key agreement with our strategic partner SOCAR to develop an additional one-gigawatt capacity of renewable projects in Azerbaijan. These include two solar power plants currently under construction and a third project—a 240-megawatt onshore wind energy project. With these projects, Masdar will invest approximately $1.2 billion in Azerbaijan," she explained.
The Masdar representative also noted that they are exploring further renewable energy developments in the country with their partners.
"These opportunities will expand, especially within the initiatives to cooperate with Central Asian countries and to establish a corridor for exporting green electricity to Europe.
We are also actively operating in the region, including Uzbekistan, where it's one of the largest investors, having already invested $2 billion into two gigawatts of renewable energy projects—mainly solar and a 500-megawatt onshore wind project," Al Mazrouei also said.
Speaking also about Masdar's active work in Kazakhstan, the company representative said that a one-gigawatt onshore wind energy project, one of the largest in the region, is implemented there.
"We are also integrating a 600-megawatt-hour fast energy storage system into the project. In addition, we are exploring further projects in countries like Georgia, Armenia, Tajikistan, and Uzbekistan.
Bankable frameworks are already in place in Uzbekistan, Kazakhstan, and Azerbaijan, which ease project development and attract investment from Development Finance Institutions (DFIs). Now, when we announce a 600- or 200-megawatt project, accessing capital is much easier," she pointed out.
Al Mazrouei emphasized that the first key technical consideration is grid infrastructure and its flexibility.
"This is because renewable resources are often located far from demand centers. Therefore, modern, digital grid infrastructure with energy storage solutions like batteries or pumped hydro systems is essential. This ensures that project implementation contributes to system development.
Another important feature is clear policy, regulation, and frameworks. Setting targets for renewable energy projects is easy, but what’s more important is having effective frameworks, streamlined permitting processes, and minimal bureaucratic hurdles to attract foreign investors.
The final key challenge is skills and the supply chain. Finding the necessary technical skills is sometimes difficult. At Masdar, we focus on developing local capabilities for project implementation and management. The Garadagh Solar Power Plant is now 100 percent managed by Azerbaijani staff. We’ve invested significant time and effort in building the local team's technical expertise.
The supply chain also remains a challenge: "In solar, wind, and battery storage projects, supply chain limitations can drive up costs. This is one of the major challenges currently facing the renewable energy sector," the official concluded.
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