UAE's Masdar Azerbaijan Energy Limited Liability Company (MAE) has signed a $21.4 million loan agreement with the Asian Development Bank (ADB) to finance its 230-megawatt (MW) Garadagh solar power plant in Azerbaijan.

MAE is a special purpose vehicle owned by UAE-based Abu Dhabi future energy company Masdar.

It is the first significant private sector renewables investment in Azerbaijan’s history with long-term international financing from development finance institutions.

In March 2022, Masdar announced the start of construction for its Garadagh plant, which is expected to start commercial operations in 2023. Masdar also signed agreements related to the development of additional clean energy projects across the country.

The project is co-financed with the European Bank for Reconstruction and Development, Japan International Cooperation Agency and Abu Dhabi Fund for Development.

(Reporting by Brinda Darasha; editing by Cleofe Maceda)