Azerbaijan powers up: $2.8 billion investment in solar and wind projects by 2027

Azerbaijan is set to embark on the construction of eight solar and wind power plants, with a total investment of $2.8 billion, aiming for completion by 2027, utilizing both foreign and local funding.

This announcement was made by Energy Minister Parviz Shahbazov in an article published in the official press on October 18, Caliber.Az reports via local media.

Shahbazov emphasized that the initiative to build and connect these industrial-scale renewable energy plants, which will have a combined capacity of approximately 2 gigawatts, marks a significant step in Azerbaijan's transition to "green energy." He stated, “This is already an irreversible process, reflecting Azerbaijan’s commitment to renewable energy.”

The minister further explained that the anticipated production of 5.3 billion kWh of electricity from these solar and wind facilities over the next three years will result in the release of 1.2 billion cubic meters of gas and a reduction in greenhouse gas emissions by 2.5 million tons.

He noted that Azerbaijan's renewable energy agenda has gained momentum under the theme of the "Year of Solidarity for a Green World" and the COP29 framework. As part of COP29, the results of the inaugural renewable energy auction will be revealed for the implementation of the 100 MW Gobustan solar power plant project.

Shahbazov also highlighted another project set to launch during COP29: the Shafag NPP, which will have a capacity of 240 MW. He added that significant progress is being made on the construction of the 240 MW Khizi-Absheron wind farm, slated for completion next year. “Components for 40 wind turbines have already arrived on-site, with installations planned in Pirekeskul village of Absheron district and Sitalchay village of Khizi district. We aim to install the first 6.5 MW turbine by the time of the COP29 conference,” he noted.

He went on to say in his article that the hydropower plants in Karabakh and East Zangezur, recognized for their significant hydropower potential, serve as the primary source of “clean energy” in the region. These two areas fulfil their electricity demands entirely through “green energy,” with any surplus supplied to the rest of the country.

He emphasised that the model of a “green energy zone” is vital for Azerbaijan's evolution into a nation of “green growth” and the establishment of “green energy” spaces by 2026. He noted that President Ilham Aliyev's strategic decision to develop Karabakh and East Zangezur under the “Green Energy Zone” concept, aiming for zero emissions, could serve as a model for countries worldwide.

Currently, the region boasts 32 hydroelectric power plants with a combined capacity of 270 MW, generating over 600 million kWh of “green energy” annually. This achievement translates to a savings of more than 160 million cubic meters of natural gas and a reduction of over 330,000 tons of carbon dioxide (CO2) emissions.

Shahbazov also mentioned that the action plan for the “National Strategy for the Efficient Use of Water Resources for 2024-2027” includes plans for constructing an additional 28 hydropower plants in these territories. The construction of six small hydropower plants, with a total capacity of 37.5 MW, has already commenced.

By Tamilla Hasanova