By Abbas Nazil
Azerbaijan has commenced construction of its largest domestic solar power plant in the Bilasuvar district, about 140 kilometers from Baku, with a planned capacity of 445 megawatts, marking a significant milestone in the country’s renewable energy ambitions.
The project officially began on August 12, 2025, with the installation of the first solar panel stand. This development is expected to greatly enhance energy supply in the region, expand renewable energy use, and support Azerbaijan’s sustainable development strategy.
The Bilasuvar solar power plant will cover 1,454 hectares of state-owned land and is being developed under an agreement between the Azerbaijani government and the United Arab Emirates’ energy giant Masdar.
The construction will involve experts from Türkiye, China, Spain, and other countries, while also engaging around 1,500 local workers from Bilasuvar to stimulate the local economy.
The investment agreement for the 445-MW facility was signed in October 2023, followed by agreements on power purchase, transmission connections, and land lease.
Masdar broke ground on the project in June 2024, and financial close was achieved in November 2024 during COP29 in Baku, with financing provided by the European Bank for Reconstruction and Development, the Asian Development Bank, and the Asian Infrastructure and Investment Bank.
In November 2024, the Asian Development Bank and Masdar signed loan agreements totaling USD 160 million to finance two of Azerbaijan’s largest solar power projects in Bilasuvar and Neftchala.
The financing package includes up to USD 48 million for Bilasuvar and USD 33.5 million for Neftchala, with an overall investment of USD 670 million from the three major lenders.
Once operational, the solar plants are projected to cut carbon dioxide emissions by about 725,000 tons annually and add 760 megawatts of clean energy capacity, tripling the country’s solar power generation.
Masdar has also entered agreements to develop additional onshore wind, solar, offshore wind, and green hydrogen projects in Azerbaijan, with an initial planned capacity of 4 gigawatts and an expansion option of up to 10 gigawatts.
This project supports Azerbaijan’s target of generating 30 percent of domestic power capacity from renewable sources by 2030, as part of its broader strategy to establish green energy zones across the country.
Since 2020, Azerbaijan has worked closely with international energy companies to harness its renewable potential, which is estimated at 135 gigawatts onshore and 157 gigawatts offshore. Partners include Masdar, ACWA Power, BP, Total Energies, Nobel Energy, Fortescue Future Industries, China Gezhouba Group Overseas Investment, and others.
In October 2023, Masdar commissioned the Garadagh Solar Power Plant, the largest solar complex in the Caspian and CIS regions, with a capacity of 230 megawatts.
Meanwhile, Saudi Arabia’s ACWA Power is preparing to launch the 240 MW Khizi-Absheron Wind Power Plant in November 2025.
By 2030, Azerbaijan plans to deploy 6.5 gigawatts of combined solar, wind, and hydropower capacity, with contracts and memorandums of understanding already covering 10 gigawatts of renewable energy projects.
