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Azerbaijan’s new inexperienced energy: contribution to home market and regional prospects



Azerbaijan’s new inexperienced energy: contribution to home market and regional prospects

BAKU, Azerbaijan, January 8.​ The official
opening ceremony of the Khizi–Absheron Wind Energy Plant, with an
put in capability of 240 MW, constructed by ACWA Energy, a Saudi Arabian
firm, was held at this time in Azerbaijan. The launch of this facility
marks not solely one other step ahead within the growth of the
nationwide power system but additionally a major signal of Azerbaijan’s
shift into one of many key hubs of inexperienced power within the area.

The plant was constructed on 14.2 hectares of land within the
Absheron district and 22.6 hectares in Khizi, totaling
roughly 37 hectares designated for renewable power sources.
The venture contains 37 wind generators, every with a capability of 6.5
MW, 12 in Absheron and 25 in Khizi. As well as, measuring and
monitoring stations in addition to trendy chicken safety methods have
been put in, guaranteeing the venture adheres to worldwide
environmental requirements.

The whole international funding within the venture amounted to round
$340 million. It is anticipated that the plant will generate
roughly 1 billion kWh of electrical energy yearly, saving as much as
220 million cubic meters of pure gasoline per yr and stopping the
emission of greater than 400,000 tons of carbon dioxide. The overall
contractor for the venture was Energy China Huadong Engineering Co.,
Ltd., a subsidiary of the Chinese language Energy China Group.

The inexperienced gentle for the Khizi-Absheron wind farm is a sport
changer for the nation’s power panorama. First, the venture
contributes to the diversification of power era and reduces
the home power steadiness’s dependence on fossil fuels. The
pure gasoline saved from wind era could be redirected for
export, notably to European markets, strengthening
Azerbaijan’s position as a dependable power provider amid rising demand
and growing concentrate on Europe’s power safety.

Secondly, the plant enhances the resilience of the nationwide
power system by making a steadiness between conventional and
renewable era. That is particularly vital given the
nation’s strategic course to develop each sectors concurrently,
as repeatedly emphasised on the highest state degree.

The chief settlement between Azerbaijan’s Ministry of Vitality
and ACWA Energy was signed on January 9, 2020. On December 30 of the
similar yr, the events concluded the Funding Settlement, Energy
Buy Settlement, and Grid Connection Settlement, involving the
Azerenergy OJSC. The muse stone for the plant was laid in
January 2022, and at this time’s launch is the logical results of a
constant and predictable funding coverage.

ACWA Energy is a significant participant within the renewable power market. The
firm is among the main non-public builders, traders, and
operators of power and water initiatives globally. As of February
2025, ACWA Energy’s portfolio contains 101 initiatives in electrical energy
era and water desalination at numerous levels, with a
mixed worth of round $107.5 billion.

President of the Republic of Azerbaijan Ilham Aliyev stated throughout
his speech on the opening ceremony of the wind energy plant that
that is the primary renewable energy plant constructed by ACWA Energy in
Azerbaijan, however not the final one.

“The corporate has larger plans, and the federal government of Azerbaijan
absolutely helps these plans,” the pinnacle of state stated.

ACWA Energy’s initiatives in Azerbaijan lengthen far past a single
wind farm. In Might 2024, the corporate and Azerbaijan’s Ministry of
Vitality signed an settlement to implement a 200 MW Battery Vitality
Storage System (BESS) venture. This venture is the bread and butter
for weaving renewable sources into the power tapestry, because it
permits for higher administration of era fluctuations, helps
steady connections with neighboring power methods, and minimizes
electrical energy losses.

Moreover, in September 2025, Azerbaijan and ACWA Energy signed
a partnership settlement for the development of a seawater
desalination plant on the Caspian Sea. The venture contains design,
building, financing, operation, and upkeep phases and can
be applied in a public-private partnership format for 25 years.
It goals to successfully handle water assets and enhance water
provide ranges for the inhabitants.




Moreover, Azerbaijan’s Amelioration Scientific Analysis
Institute and ACWA Energy signed a memorandum of understanding on
information and expertise trade in water and land assets,
underscoring the long-term and complete nature of the
cooperation.

Relating to the nation’s renewable power potential, President
Ilham Aliyev said that over the previous 20 years, the era
capacities created in our nation have elevated by about three
instances in comparison with your entire earlier interval.

“At this time, our era capability constitutes roughly 10,000
megawatts. This, if we might say so, is a historic report. Nevertheless,
on condition that many new renewable power era capacities can be
put in place within the coming years, this determine will definitely
enhance and can allow us to each meet the rising home
demand adequately and export electrical energy in bigger volumes,” the
head of state famous.

The technical potential of renewable power sources within the
nation is estimated at 135 GW on land and 157 GW at sea. Karabakh,
Jap Zangezur, and the Nakhchivan Autonomous Republic have been
declared inexperienced power zones, the place the entire renewable power
potential reaches 20 GW.

It is projected that the share of renewable power in electrical energy
manufacturing will attain 25% by 2027 and 30% by 2030. The primary part,
by the tip of 2027, will see about two GW of capability launched,
with greater than six GW in subsequent years. Initially, precedence will
be given to home consumption, with a concentrate on electrical energy
exports and powering information facilities in later phases.

The event of renewable power in Azerbaijan is intently
linked to the formation of worldwide inexperienced power corridors,
together with routes from the Caspian Sea to the Black Sea to Europe,
Central Asia to Azerbaijan, Azerbaijan to Türkiye to Europe, and
Azerbaijan to Türkiye to Georgia to Bulgaria. These initiatives put
the nation on the map as a go-to spot for clear power transit and
exports, actually turning the tide within the power sport.

The commissioning of the Khizi-Absheron wind farm clearly
demonstrates that Azerbaijan is shifting from remoted initiatives to a
systematic growth of renewable power. The nation isn’t just
increase its personal power safety but additionally laying down a steady
groundwork for power exports and bringing in long-term international
investments.

The combination of strategic planning, worldwide teamwork, and massive
infrastructure initiatives helps Azerbaijan to firmly set up itself
as one of many most important gamers within the area’s inexperienced power scene.

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