The Malibay small hydroelectric power plant in Lachin District Azerbaijan’s green energy expansion

As Azerbaijan prepares for COP29 in November and advances its green agenda, significant developments are underway in the energy sector, particularly in the de-occupied Karabakh region. A pivotal project marking this progress is the Malibay small hydroelectric power plant, whose foundation was laid on June 1 in the village of Malibay in Lachin District.

Commitment to green energy & sustainability

The Malibay project is a joint venture involving the Azerbaijani Investment Company OJSC, which is owned by the Ministry of Economy, Turkish Demirören Holding, and Arges Enerji Teal. This collaboration signifies a robust partnership to harness green energy through innovative technologies.

The Malibay hydroelectric power plant is set to be constructed on the Zabux River, a tributary of the Hakari River, employing state-of-the-art European and Chinese technologies. This integration of advanced technology ensures the plant’s efficiency and sustainability, aligning with global standards for green energy production.

The development of the Malibay plant represents the first phase of a broader energy project in the region. The second phase will see the construction of three additional small hydroelectric power plants - Galaca-1, Galaca-2, and Minkand - in Lachin District. The third phase will focus on the Tartar-1 station in Kalbacar District. By 2025, these five small hydroelectric power plants will collectively have a total capacity of 13.8 MW, producing 39.7 GWh of electricity annually. The Malibay plant alone will contribute 5.1 MW, generating 14.57 GWh per year.

The total cost of the project is estimated at AZN25 million (approximately $14.7 million), with each station designed to have a service life of 30 years. This project is expected to create employment opportunities for 25 people, contributing to the local economy and community development.

The establishment of the Malibay small hydroelectric power station is a testament to Azerbaijan’s commitment to its Green Energy policy, especially in the liberated territories. Masim Mammadov, the special representative of the Azerbaijani president in Lachin, emphasized the significance of this project during the ground-breaking ceremony. He noted that the Malibay station exemplifies Azerbaijan's dedication to creating zero-emission zones in the liberated areas, highlighting the district’s substantial green energy potential.

Expanding green energy capacity

To date, nine small hydroelectric power stations with a combined capacity of approximately 80 MW have been launched in Lachin District. The Malibay station, being the tenth, further expands this capacity, underscoring the region's role in Azerbaijan’s green energy landscape.

The Malibay small hydropower plant marks the first private sector energy project in the liberated territories, as stated by Azerbaijani Deputy Economy Minister Anar Axundov at the ceremony. This initiative highlights the crucial role of private sector partnerships in advancing Azerbaijan’s energy goals.

The collaboration with Turkish entities in the Malibay project underscores the importance of international partnerships in achieving sustainable energy objectives. Deputy Economy Minister Axundov expressed satisfaction with the cooperation, noting the positive impact of such collaborations on Azerbaijan’s green energy projects.

Azerbaijan's preparations for COP29 and its green agenda are part of a broader strategy that includes significant international projects. Notably, Azerbaijan is working on an undersea cable deal with Georgia, Romania, and other nations to export green energy, showcasing its commitment to becoming a regional green energy hub.

Conclusion

The foundation of the Malibay small hydroelectric power plant represents a significant milestone in Azerbaijan’s journey towards sustainable energy. Through strategic partnerships, advanced technologies, and a phased development approach, Azerbaijan is poised to enhance its green energy capacity significantly. As the nation prepares for COP29, projects like Malibay not only reinforce its commitment to green energy but also pave the way for a sustainable future in the South Caucasus region.