BAKU, Azerbaijan, August 3. The opening of the
220/110/10-kilovolt Yeni Sangachal substation befell with the
participation of President of the Republic of Azerbaijan Ilham
Aliyev at this time. This mission marks the following stage within the
transformation of Azerbaijan’s vitality sector, the place the event
of renewable vitality sources is more and more built-in with
conventional oil and gasoline infrastructure.
Just some years in the past, the implementation of renewable vitality
initiatives was seen primarily as a part of a decarbonization coverage,
while at this time they’re changing into a component of a broader technique
geared toward concurrently growing the effectivity of the nationwide
vitality system, strengthening the nation’s export potential, and
guaranteeing the long-term sustainability of the vitality sector.
The mission, connecting the Shafag solar energy plant below
development within the Jabrayil district and the Sangachal terminal
by way of Azerbaijan’s unified energy grid, is among the most
illustrative examples of this strategy. This mission won’t solely
scale back carbon emissions and transition one of many key oil and gasoline
trade amenities to renewable vitality sources, however will even
yearly launch vital volumes of pure gasoline that may be
exported. Given the continued demand for Azerbaijani gasoline in Europe,
such initiatives are buying not solely environmental but additionally
strategic financial significance.
This massive-scale mission envisages the mixing of the 240 MW
Shafag solar energy plant, at present below development within the
Jabrayil district, into Azerbaijan’s energy grid and the supply
of electrical energy to the Sangachal terminal by way of the nation’s unified
energy grid. The mission is being carried out below a cooperation
settlement between Azerenergy OJSC and bp.
The primary stage of the mission was the opening of the
330-kilovolt Shafag substation in Soltanli village of the Jabrayil
district on Might 9 of this yr. The subsequent step was the development
of the Yeni Sangachal substation, which is able to make sure the
transmission of electrical energy to the Sangachal terminal.
As soon as the mission is commissioned, the terminal’s present
gas-fired energy plant might be shut down, and electrical energy generated
by the Shafag solar energy plant might be equipped to the power
by way of the nationwide grid. In consequence, the Sangachal Terminal’s annual
electrical energy demand of roughly 500 million kWh might be
solely met by renewable vitality sources. This may save 120-150
million cubic meters of pure gasoline yearly and scale back carbon
dioxide emissions by 260,000-330,000 tons.
Moreover, the brand new substation will provide energy to bp’s 80 MW
Sangachal Terminal and 85 MW Shah Deniz Compressor Station. Thus,
the mixed demand of those two strategic amenities, exceeding 1
billion kWh per yr, might be lined by Azerbaijan’s unified energy
grid.
Liberated territories change into vitality hubs
The mission additionally displays the brand new function of the liberated
territories within the nation’s vitality coverage. The Jabrayil district
is step by step changing into not solely a website for renewable vitality
amenities but additionally a supply of electrical energy for Azerbaijan’s
strategic oil and gasoline infrastructure.
Development of the 240 MW Shafag solar energy plant is actively
underway. In April 2026, the primary photo voltaic module was put in at
the positioning, the supply of the principle tools was accomplished, and
roughly 30% of the towers and monitoring methods have already
been put in. Upon completion in 2027, the plant will be capable of
generate roughly 500 million kWh of electrical energy yearly. The
mission is being carried out by a consortium consisting of bp
(40.01%), SOCAR Inexperienced (39.99%), the Azerbaijan Enterprise Improvement
Fund (10%), and the Hungarian MVM firm (10%).
One of many mission’s key options is the implementation of a
“digital vitality switch” mechanism, which is able to enable solar energy
generated in Jabrayil to be equipped to the Sangachal terminal by way of
the nationwide grid.
After totally electrification of the terminal, the seven gasoline
generators at present used for energy era might be step by step
decommissioned. This implies not solely a discount in operational
emissions by roughly 50%, but additionally the chance to export
the freed pure gasoline. Particularly this part makes the mission
necessary not solely from a local weather coverage perspective but additionally from
an vitality safety and export technique perspective for
Azerbaijan.
Renewable vitality turns into new progress hub
Lately, Azerbaijan has considerably accelerated the
improvement of renewable vitality.
As President Ilham Aliyev famous, the nation may have 2 GW of
photo voltaic and wind era by the tip of 2027, and this determine
ought to attain 8 GW by 2032.
“Our duty dictates that we spend money on renewables. And
we’re doing that, along with our companions, creating excellent
situations for buyers, roughly the identical as people who
existed at first of the Nineteen Nineties for oil corporations. Now, the
similar degree of cooperation and investment-friendly strategy is being
utilized to corporations within the renewable vitality sector. We already
have a number of initiatives in operation. By the tip of subsequent yr, we
may have 2 gigawatts of photo voltaic and wind capability. By the tip of
2032, we may have 8 gigawatts of photo voltaic and wind capability. And if
we add hydropower, which we’re actively creating, particularly in
the liberated areas of Garabagh and East Zangezur, the place greater than
300 megawatts have already been commissioned, this represents
further potential,” mentioned President Ilham Aliyev, talking on the
opening of the Baku Vitality Week on June 1.
Immediately, the put in capability of renewable vitality amenities in
the nation is roughly 1.83 GW, and their share of the overall
put in capability of the facility grid has reached virtually 19%. This
optimistic development is already mirrored within the present indicators of
the nation’s electrical energy sector. In line with information from the
Azerbaijani Ministry of Vitality, from January by June 2026,
electrical energy manufacturing at thermal energy vegetation amounted to 10.59
billion kWh, at hydropower vegetation – 1.89 billion kWh, and at different
era amenities – 902 million kWh.
Of this quantity, wind energy vegetation accounted for 475.7 million
kWh, solar energy vegetation – 282.7 million kWh, and one other 143.6
million kWh was generated on the Municipal Strong Waste Incinerator
Plant.
In comparison with the identical interval final yr, hydropower era
elevated by 31.2 million kWh, whereas wind energy era
elevated by 454.7 million kWh. General, renewable vitality
era, together with hydropower, rose by 463.1 million kWh to 2.79
billion kWh, demonstrating the continued growth of renewable
vitality sources within the nation’s vitality steadiness.
Main worldwide buyers play a key function within the
implementation of renewable vitality initiatives. Certainly one of Azerbaijan’s
largest companions is Masdar (UAE), which has already commissioned
the nation’s first commercial-scale solar energy plant, Garadagh,
with a capability of 230 MW. At present, the corporate is implementing
three extra main initiatives in partnership with SOCAR Inexperienced: photo voltaic
energy vegetation in Bilasuvar with a capability of 445 MW and Neftchala
with a capability of 315 MW, in addition to the Absheron-Garadagh wind
farm with a capability of 240 MW.
Saudi Arabia’s ACWA Energy can be steadily increasing its
presence in Azerbaijan. In January 2026, the nation’s largest wind
farm, the Khizi-Absheron wind farm with a capability of 240 MW, was
formally opened. The corporate views Azerbaijan as a precedence
marketplace for additional funding within the renewable vitality sector.
Chinese language corporations are additionally displaying rising curiosity within the
Azerbaijani market, collaborating in negotiations and the
implementation of recent photo voltaic and wind vitality initiatives. Thus, the
improvement of renewable vitality is changing into not solely an necessary
aspect of the nationwide vitality technique but additionally some of the
engaging areas for overseas funding.
Concurrently, Azerbaijan is selling the creation of
worldwide inexperienced vitality corridors, together with the Caspian-Black
Sea-Europe route, which has already entered the event stage
following the completion of feasibility research.
The Yeni Sangachal mission demonstrates that renewable vitality
improvement in Azerbaijan extends far past the development of
particular person photo voltaic and wind energy vegetation. The nation is step by step
shaping a brand new vitality mannequin by which renewable vitality sources are
changing into a part of the oil and gasoline infrastructure, growing its
effectivity and environmental friendliness.
Integrating photo voltaic era with the nation’s largest export
terminal concurrently reduces the nation’s carbon footprint,
modernizes the vitality system, and frees up further pure gasoline
volumes for export. With Azerbaijani gasoline exports increasing and
large-scale renewable vitality initiatives underway, such options are
changing into an necessary aspect of the nation’s long-term technique
to strengthen its function as a dependable provider of each conventional
and inexperienced vitality in regional and European markets.
