Details added: first version posted on 13:25
BAKU, Azerbaijan, February 23. Contracts have been signed for two more solar power plant projects in Azerbaijan, the statement of the Ministry of Energy says, Trend reports.
A meeting was held at the ministry with the participation of Energy Minister Parviz Shahbazov, Azerenergy OJSC, Economy Minister of the Nakhchivan Autonomous Republic Kazim Huseynaliyev, and executives of the State Agency for Renewable Energy Sources, Azerbaijan Green Energy Company (AGEC), CEI Nakhchivan LLC, Nobel Energy, and Enerso LLC.
The meeting discussed the development of Nakhchivan in accordance with the strategic vision of the President of Azerbaijan, Ilham Aliyev, regarding the green energy zone, the measures taken to expand the use of renewable energy sources in Nakhchivan, the establishment of modern network infrastructure, and strengthening the energy system. The work carried out on the energy component of the Zangezur corridor, including the integration of energy systems, and the prospects for exporting electricity from Nakhchivan, were reviewed. Cooperation with CEI Nakhchivan LLC and Enerso LLC on the construction of 50 MW solar power plants in Nakhchivan was assessed as an important stage in the green energy agenda of Azerbaijan.
“The widespread use of renewable energy sources to strengthen the energy security of the Nakhchivan Autonomous Republic, accelerate its sustainable socio-economic development, and transform it into a regional energy production and export center is one of the priority directions in the strategic course of the head of state. Currently, the share of renewable energy sources in Nakhchivan is 44% in the installed capacity of electricity and 36.4% in production. The Shams 1 and Garbi Ufuq solar power plants, which are the first examples of private investment in the field of renewable energy in Nakhchivan, with a total investment value of more than 60 million manat ($35.2 million), will make a significant contribution to the formation of a green development model in the region,” Shahbazov said at the meeting.
Baba Rzayev, President of Azerenergy OJSC, emphasized the importance of solar power plants in terms of strengthening the sustainability of energy supply in the Nakhchivan Autonomous Republic and meeting the growing demand, especially in the summer months.
Huseynaliyev highly appreciated the role of these new projects in realizing the rich solar energy potential of this strategically important economic region. He noted that the new powers to be created in Nakhchivan will give impetus to economic development, and in the future, energy exports to neighboring countries and Europe.
“We believe that this initiative, implemented within the framework of partnership with state agencies, will create a basis for increasing green investments in the region and creating long-term economic value. This project is a real result of the synergy of the public and private sectors. The project will both contribute to the energy security of the region and serve Azerbaijan’s strategic goals in renewable energy,” Deputy Chairman of the AGEC Board of Directors, Khayala Naghiyeva, said.
“We are pleased to support the “Green Energy Zone” initiative in Nakhchivan by expanding the use of renewable energy through the development of solar power plants. As “Nobel Energy”, we continue to contribute to economic growth and energy transition by building a modern and sustainable energy infrastructure in the region,” Eldar Mammadzade, Chief Commercial Officer of Nobel Energy, said.
In conclusion, the Government of Azerbaijan, Azerenergy OJSC, and CEI Nakhchivan LLC signed an Investment Agreement, Energy Purchase and Sale Agreement, and Transmission Grid Connection Agreement for the 25 MW Shams 1 Solar Power Plant project in the Nakhchivan Autonomous Republic. Also, the Government of Azerbaijan, Azerenergy OJSC, and Enerso LLC signed an Investment Agreement, Energy Purchase and Sale Agreement, and Transmission Grid Connection Agreement for the 25 MW Garbi Ufuq Solar Power Plant project. Investment agreements with companies on power plants were signed by Parviz Shahbazov on behalf of the Government of Azerbaijan, and energy purchase and connection to the transmission network agreements were signed by Rzayev.
As a result of the implementation of these projects, a total of 122 million kWh of electricity is expected to be produced annually, which will allow saving 26 million cubic meters of gas and reducing 57 thousand tons of carbon emissions.
Azerbaijan has set targets for electricity production, especially green energy. Strategic steps are being taken to achieve these targets. In this context, the commissioning of new power plants is of particular importance. With the commissioning of new plants, the country's electricity production is demonstrating growth dynamics. Thus, according to operational data, electricity production in Azerbaijan rose by 262.3 million kWh, or 0.9%, to 28.6 million kWh in 2025.
During this period, 24.82 billion kWh were produced in thermal power plants, 2.84 billion kWh in hydropower plants, and 991.6 million kWh from other sources, including 169.7 million kWh in wind power plants, 599.8 million kWh in solar power plants, and 222.1 million kWh in the Solid Waste Incineration Plant.
Wind and solar power production in Azerbaijan grew by 162.3 million kWh in 2025 compared to 2024.
In 2025, electricity production by Azerenergy OJSC amounted to 25.59 billion kWh (22.7 billion kWh in thermal power plants, 2.8 billion kWh in hydropower plants, 61.1 million kWh in solar power plants), 27 million kWh in wind power plants by Azerishig OJSC, and three billion kWh in independent power plants.
Over the reporting period, Azerbaijan's electricity export amounted to 1.14 billion kWh, and import amounted to 177.2 million kWh.
During 2025, 507.6 million kilowatt-hours of electricity were produced at the power plants of Azerenergy OJSC's Nakhchivan Energy LLC in the exploitation area.
Thus, 321.7 million kilowatt-hours or 63.4% of this electricity was produced at thermal power plants, 125.1 million kilowatt-hours or 24.7% at hydroelectric power plants, 60.7 million kilowatt-hours or 11.9% at solar and wind-solar hybrid power plants, and transmitted to the electricity grids.
As many as 36.6% of the total electricity produced in Nakhchivan fell to the share of alternative and renewable energy sources.
In general, by 2032, Azerbaijan is expected to achieve a total of eight gigawatts of solar and wind energy capacity.