Masdar: Azerbaijan becoming attractive market for green energy investors

Azerbaijan is increasingly becoming a promising destination for investments in renewable energy, thanks to strong political commitment, abundant natural resources, and a favorable regulatory environment, Mazin Khan, Chief Financial Officer of the UAE-based company Masdar, said during a panel discussion titled “Azerbaijan: Emerging Gateway to Green Growth and Connectivity” at the European Bank for Reconstruction and Development (EBRD) Annual Meeting in London.

According to Khan, both the UAE and Azerbaijan are undergoing a similar transformation—from being oil- and gas-focused economies to striving for a more sustainable energy mix. This shift, he noted, is not only an ecological necessity but also an economically sound strategy.

“From an investor’s perspective, I would highlight three key factors that attracted us to Azerbaijan,” Khan said.

First, he pointed to the strong commitment of Azerbaijan's leadership to renewable energy development:

“As already mentioned, the 2030 targets are likely to be met ahead of schedule. This is a real indicator—laws are being passed, and implementation mechanisms are being launched. For private investors, this is a key signal.”

Second is the availability of natural resources, particularly solar and wind energy:

“Azerbaijan has significant untapped potential for wind energy, both onshore and offshore. We see opportunities here to apply smart technologies and scale projects,” he explained.

Third, Khan highlighted the improvement in the regulatory environment:

“As Deputy Energy Minister Elnur Soltanov noted, Azerbaijan has created a stable regulatory framework. Especially important are long-term power purchase agreements (PPAs), which make projects financially viable and open the door to attracting debt financing.”

He emphasized that regulatory stability and predictability are crucial for investment decisions.

As a result, Khan said, Masdar is not only active in Azerbaijan but is already implementing large-scale projects:

“A 230 MW solar power plant is already operational in the Garadagh region. But we’re not stopping there—we’ve signed agreements to develop projects with a total capacity of up to 10 gigawatts in the short and medium term. We see immense potential and many factors working in Azerbaijan’s favor,” the CFO concluded.