Baku: During the visit of President of the Republic of Azerbaijan Ilham Aliyev to China, six significant documents on cooperation in the field of renewable energy were signed, APA-Economics reports.
According to Azeri-Press News Agency, these documents cover a wide array of projects including the construction of solar power plants with a total capacity of 260 MW, a 100 MW floating solar power plant, a 30 MW battery energy storage system, a 2 GW offshore wind energy project, and the development of another 2 MW wind power project. Additionally, the agreements aim to foster cooperation in the development of renewable energy sources and the planning of the electric power system.
One notable investment agreement was signed between the Government of the Republic of Azerbaijan and Universal Solar Azerbaijan LLC for the Gobustan solar power plant project with a capacity of 100 MW. The Ministry of Energy and Universal Solar Azerbaijan LLC will spearhead the construction and operation of this plant, which is expected to be commissioned in 2026. The plant will generate approximately 180 million kWh of electricity annually, saving 39 million cubic meters of natural gas and reducing carbon emissions by 86,000 tons. This project marks a collaboration with a Chinese company determined through an auction process.
The Ministry of Energy and China Energy Overseas Investment Co. Ltd. entered into an Executive Agreement to assess, develop, and implement an offshore wind energy project in Azerbaijan. This collaboration will evaluate the wind energy potential in the Caspian Sea and plan the construction of projects in this area. The project envisions the development of an offshore wind plant with a minimum capacity of 2 GW, executed in phases.
Another significant document was signed between the Ministry of Energy, China Datang Overseas Investment Co. Ltd, and SOCAR Green LLC, focusing on a 100 MW floating solar power plant paired with a 30 MW battery storage system on Lake Boyukshor. China Datang Overseas Investment Co. Ltd will serve as the main investor for this initiative, which includes feasibility studies, design, financing, construction, operation, and maintenance through a newly created project company.
Moreover, an Implementation Agreement was exchanged for a 160 MW solar power plant project between the Ministry of Energy, PowerChina Resources Limited, and SOCAR Green LLC. This project will include a special project company and a Steering Committee to oversee its execution. The Ministry of Energy will support land allocation, permit issuance, and local resource utilization. The plant is set for commissioning in 2028 and is projected to produce about 332 million kWh of electricity per year, saving 73 million cubic meters of natural gas and reducing carbon emissions by 160,000 tons.
In the realm of offshore wind energy, the Ministry of Energy, SOCAR Green LLC, China Datang Overseas Investment Co. Ltd, and PowerChina Resources Limited signed a Memorandum of Understanding for developing a 2 GW capacity project in the Azerbaijani sector of the Caspian Sea. This memorandum focuses on assessing investment opportunities and establishing technical and legal support mechanisms, with a Steering Committee and Working Group to drive project development.
Lastly, a Memorandum of Understanding on renewable energy development and electric power system planning was signed between the Ministry of Energy and the Electric Power Planning and Engineering Institute of the People’s Republic of China. This memorandum aims to conduct studies on integrating renewable energy sources into the grid post-2028, identifying technically and economically viable solutions, and preparing relevant proposals. The initial stage involves assessing the need for renewable energy sources, followed by studying the integration of specific capacities into the transmission network.