Private solar and wind plants under government investment agreements
Azerbaijan's government brought its first utility-scale private solar plant, Masdar's 230 MW Garadagh plant built with US$262 million of foreign investment, into operation on 26 October 2023, followed on 16 September 2026 by the 100 MW Gobustan plant won at a 2024 auction, with further private wind and solar plants under investment agreements and power purchase contracts.
230 MW, capacity of the garadagh solar power plant, the first private utility-scale plant, in operation, 2023-10-26. 262 million US$, foreign investment in the garadagh plant, 2023. Ministry of Energy of the Republic of Azerbaijan, 'Use of renewable energy sources in Azerbaijan', retrieved 2026-10-02.
The move, and what it needed
The government signed investment agreements, land leases, power purchase, grid connection and balancing agreements with foreign developers, first bilaterally with Masdar and then through an auction, for private plants connected to the national grid.
Preconditions
- A state counterparty able to sign long-term power purchase and grid agreements
- Gas exports valuable enough that each kilowatt-hour from renewables frees gas for sale, which is how the ministry frames each plant
- Gulf developers willing to invest on bilaterally negotiated terms before an auction was held
Where else it has been used: Uzbekistan's tendered solar IPPs (uzb-renewable-ipp) used the same Gulf developers in the same years.
Limits: The ministry describes its own programme on an undated web page that has been updated at least to September 2026; the investment figure and capacities are the ministry's, with no audited cost and no published tariff. Two private plants are operating, 330 MW together by our sum, against 2,170 MW of renewable capacity the same page reports in operation, most of it state hydropower; the rest of the private pipeline (ACWA Power's 240 MW Khizi-Absheron wind farm, bp's 240 MW Shafag plant, Masdar's 1 GW 'mega project', two 50 MW plants in Jabrayil) is under construction or planned, and the page gives no completion dates. 'Implemented jointly with local and international partners' covers different structures: Garadagh and Gobustan are built and owned by foreign developers, though the page does not name their buyer or contract terms, Shafag serves bp's own terminal through a 'virtual' transmission swap, and the page does not say which plants were competitively tendered beyond Gobustan. The collaboration is recent, so the record shows a start, not a sustained programme. The ministry's page describes Garadagh as 'put into operation as a pilot project'; it is a 230 MW grid-connected plant, so we read the word as first-of-kind rather than as a trial, but the source uses it.