Renewable energies are the new market share to be conquered by the UAE company Masdar. It entered into two project agreements to develop renewable energy on June 5, 2022 in Azerbaijan.
The agreements were signed by Masdar Clean Energy’s acting executive director Fawaz Al Muharrami and Azerbaijan’s energy minister He Parviz Shahbazov.
The first solar and wind project aims to strengthen the electricity system but also to create export opportunities. The second, on the other hand, includes measures to create wind energy for production and export, decarbonization, and renewable hydrogen production and export.
In parallel, the UAE company has also signed a Memorandum of Understanding with the State Oil Company of Azerbaijan Republic (SOCAR) for the joint development of renewable energy sources.
These agreements will help meet demand, reduce emissions and create jobs.
Renewable energies at the heart of the agreements
Azerbaijan’s President Ilham Aliyev wants to make renewable energy a priority for the country’s development. The agreements signed with Masdar will therefore constitute a springboard for the country’s development. The objective of the country is to develop a green growth but also to produce and export these new energy sources. The particularity of Central Asia is its vast territory where the implantation of wind or solar farms is therefore possible.
Thus, the onshore wind project will have a capacity of 1GW as well as the solar photovoltaic project. In addition, there is a second agreement for offshore wind projects and the production of renewable hydrogen. The expected capacity is 2GW.
These projects will represent the largest renewable energy production capacity in the Central Asian region. This will boost the country’s economic development through exports but also ensure its energy security. Azerbaijan is a country dependent on its oil revenues, so these new projects will help diversify the country’s income.
Thus the Azerbaijani Minister of Energy said:
“Today, we will sign mega projects with Masdar in accordance with the Green Energy Course of the President of Azerbaijan, which defines renewable energy sources as a strategic priority for the country’s development. “
In addition to these agreements, the agreement signed between Masdar and SOCAR testifies to the international establishment of the Emirati company. While still dependent on its hydrocarbon income, the UAE through this company wishes to position itself as a leader in the renewable energy market.
Renewable energies: Masdar’s global presence
The UAE is thus conquering the renewable energy market. Aware that the hydrocarbon rent will only last for a while, they wish to diversify their income. The UAE has already concluded projects in Armenia, Georgia, Greece, Iraq and Poland.
More recently, in April 2022, they established themselves in Kyrgyzstan through the signing of a memorandum of understanding. The latter includes ground and floating photovoltaic projects as well as hydroelectric projects.
The company has also partnered with Egyptian company Infinity Energy to buy Lekela. Lekela is a South African company specialized in wind farms. It develops many wind projects in Africa, particularly in Egypt and Senegal. This acquisition allows Masdar to recover market share and to confirm its presence on the African continent.
This establishment in the field of renewable energies has also been concretized by the development of the Emirati company in Egypt. The objective is the production of renewable hydrogen.
The Emirati company is entering the renewable energy market in order to diversify the country’s revenues. It is developing in the different sectors of renewable energy, namely wind power, solar power and the production of renewable hydrogen. Thus, by diversifying its establishments and its various sectors, the Emirati company conquers consequent market shares.
The UAE is targeting a 25% global market share for low-carbon hydrogen by 2030. Since the beginning of 2022, Masdar has signed agreements for renewable energy and green hydrogen projects with a combined capacity of over 10 GW.
