On January 9, 2020, the Ministry of Energy of the Republic of Azerbaijan and Masdar Company of the United Arab Emirates signed an Implementation Agreement. According to the Agreement, pilot project will be implemented for the construction of solar power plant with a capacity of 230 MW by “Masdar”. In this regard, on April 6, 2021, Investment agreement, Power Purchase agreement and Transmission Connection agreement were signed on 230 MW solar power plant between the Ministry of Energy, Azerenergy OJSC and and “Masdar” of the United Arab Emirates. The project with a total installed capacity of 230 MW will be implemented in an area 9 km northwest of Alat settlement.
According to preliminary estimates, the solar power station will annually generate 500 million kWh of electricity, will save 110 million cubic meters of natural gas per year, to prevent 200,000 tons of carbon dioxide emissions and and to supply 110,000 homes with electricity. The total cost of the project is approximately $ 200 million and is expected to be fully funded by foreign investment. On March 15, 2022, with the participation of President of the Republic of Azerbaijan Ilham Aliyev and Minister of Energy and Infrastructure of the United Arab Emirates, Suhail Al Mazrouei groundbreaking ceremony of the 230 MW Garadagh Solar Power Plant was held.