UAE's Masdar sees Azerbaijan as key hub for solar and wind expansion

Azerbaijan is becoming an increasingly attractive destination for investment in renewable energy thanks to strong political commitment, abundant natural resources, and a favourable regulatory environment, according to Mazin Khan, Chief Financial Officer of Masdar, the UAE’s leading clean energy company.

Speaking at the panel discussion "Azerbaijan: Emerging Gateway to Green Growth and Connectivity" during the annual meeting of the European Bank for Reconstruction and Development (EBRD) in London, Khan emphasised the parallels between the UAE and Azerbaijan, Caliber.Az reports via local media.

Both countries, historically reliant on oil and gas, are now shifting toward a more sustainable energy balance—an economically sound transition, he stressed, not just an environmental imperative.

"As an investor, I’d highlight three key factors that drew us to Azerbaijan," Khan said.

First and foremost, he pointed to the Azerbaijani government’s strong commitment to developing renewable energy. “As mentioned earlier, the targets set for 2030 are likely to be achieved ahead of schedule. This is a real signal—legislation is being passed, and implementation mechanisms are underway. For private investors, this kind of commitment is critical,” he said.

The second factor, he noted, is the country’s rich natural endowment, particularly in solar and wind energy. “The wind energy potential—both onshore and offshore—is considerable and remains largely untapped. We see an opportunity here to deploy smart technologies and scale projects,” Khan added.

The third major draw is the improving regulatory framework. Referring to Deputy Energy Minister Elnur Soltanov’s earlier comments, Khan said Azerbaijan has developed a stable legal environment. He highlighted the importance of long-term power purchase agreements (PPAs), which make projects financially viable and open the door to debt financing.

“Regulatory stability and predictability of conditions are decisive factors in investment decision-making,” Khan stressed. As a result, Masdar has already moved beyond market entry and is now implementing large-scale projects in Azerbaijan.

“We already operate a 230 MW solar power plant in the Garadagh district. But we’re not stopping there—we’ve signed agreements to develop projects totalling up to 10 gigawatts in the short- and medium-term. We see enormous potential and numerous factors working in Azerbaijan’s favour,” he concluded.

By Tamilla Hasanova