Azerbaijan’s Ministry of Energy has finalized three investment agreements involving Chinese companies to develop solar energy projects, enhancing the country’s renewable energy capacity. These agreements, signed during a recent visit by President Ilham Aliyev to China, focus on sustainable energy solutions across different regions of Azerbaijan.

The first agreement involves a 160 MW solar plant, developed in collaboration with PowerChina Resources Limited and Socar Green LLC, a subsidiary of the State Oil Company of Azerbaijan (Socar). A dedicated project company and steering committee will oversee the project, with the Ministry facilitating land allocation, permits, and local resource utilization. The plant is expected to be operational by 2028. A Ministry spokesperson stated: “This project marks a significant step in expanding our renewable energy infrastructure with international expertise.”

The second agreement pertains to a 100 MW solar power plant in the Gobustan district of eastern Azerbaijan. Signed with Universal Solar Azerbaijan LLC and a Chinese company selected through an auction, the contract covers the plant’s construction and operation. It includes provisions for electricity purchase agreements and connection to the national transmission network. The facility is slated for commissioning in 2026. The Ministry noted: “The Gobustan project will contribute to our goal of diversifying energy sources and meeting growing demand sustainably.”

The third project is a 100 MW floating solar power plant with a 30 MWh battery storage system, located on Lake Boyukshor near Baku. This agreement, between the Ministry, Socar Green, and China Datang Overseas Investment Co. Ltd., covers feasibility studies, design, financing, construction, operation, and maintenance. A new project company will manage these activities. A Socar Green representative said: “The floating solar plant represents an innovative approach to utilizing Azerbaijan’s natural resources for clean energy production.”

These projects build on Azerbaijan’s growing renewable energy portfolio, which reached 293 MW of solar capacity by the end of 2024, according to the International Renewable Energy Agency (IRENA). In November 2024, China’s Huantai Energy Co., Ltd. won a contract to construct a 100 MW solar plant in eastern Azerbaijan, offering a competitive bid of $0.0354/kWh in the country’s first renewables auction. Additionally, a 240 MW solar project began in southwestern Azerbaijan, and funding was secured for two southeastern projects totaling 760 MW.

These initiatives reflect Azerbaijan’s commitment to expanding renewable energy through international cooperation, with the new solar projects expected to enhance energy security and support sustainable development goals.

by pv magazine