BAKU, Azerbaijan, May 14. Azerbaijan’s commitment to diversifying its energy mix and fostering a sustainable future has attracted significant private sector investment, said Mazin Khan, Chief Finance Officer of Masdar, Trend reports.
Speaking at the panel discussion "Azerbaijan: Emerging Gateway to Green Growth and Connectivity" during the EBRD Annual Meetings in London, Khan emphasized the country’s growing appeal for energy investors.
"Azerbaijan shares a very similar background with other economies based primarily on oil and gas. However, now, countries like Azerbaijan are realizing that diversification of the energy mix is not just an ethical responsibility, but also a commercially sound and long-term strategy," Khan said. "From an investor's perspective, there are three main reasons we are attracted to Azerbaijan".
The first reason, according to Khan, is Azerbaijan’s strong commitment to renewable energy. "The leadership’s commitment, as already highlighted by ministers, to ensure that renewables play a key role in the energy mix, and the 2030 target that was mentioned, is something we believe will be achieved even ahead of schedule," he remarked. "This shows that work is being done, and laws are being enacted to make this goal a reality".
Khan then turned to Azerbaijan’s abundant natural resources, particularly its wind and solar potential. "Azerbaijan has significant untapped potential, particularly in wind energy - both onshore and offshore. This is a natural renewable resource, and the potential is enormous," he explained. "We need to find smart ways to effectively access these resources".
The third factor highlighted by Khan was Azerbaijan’s regulatory environment, which he described as a crucial element for attracting investment. "The steps taken to stabilize and improve the regulatory framework are critical," Khan noted. "Long-term power purchase agreements make projects bankable, which in turn attracts debt investors and helps fast-track projects".
Thanks to these factors, Masdar has already invested in Azerbaijan, with a 230-megawatt photovoltaic (PV) plant in Garadagh. Additionally, the company has signed a development agreement for up to 10 gigawatts of renewable energy projects in the short to medium term. "We see a lot of potential in Azerbaijan, and we’re excited about the many more projects to come," Khan said.