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Azerbaijan, China ink six green energy agreements (PHOTO)

Oil&Gas Materials 23 April 2025 11:50 (UTC +04:00)
Azerbaijan, China ink six green energy agreements (PHOTO)
Basti Mammad
Basti Mammad
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BAKU, Azerbaijan, April 23. As part of President Ilham Aliyev’s official visit to China, six agreements were signed between Azerbaijan and Chinese partners to boost cooperation in the field of renewable energy, the Ministry of Energy has announced, Trend reports.

The signed documents cover a range of initiatives, including solar power plants with a total capacity of 260 MW, a 100 MW floating solar plant, a 30 MW battery energy storage system, the development of an offshore wind farm with a minimum capacity of 2 GW, a separate 2 MW wind project, and broader cooperation on renewable energy and power system planning.

One of the key deals is an Investment Agreement between the Government of Azerbaijan and “Universal Solar Azerbaijan” LLC for the construction and operation of the 100 MW “Gobustan” solar power plant. The next steps include signing power purchase, grid connection, and land lease agreements. The plant is expected to go into operation in 2026, generating around 180 million kWh of electricity annually — saving approximately 39 million cubic meters of natural gas and reducing carbon emissions by 86,000 tons. The Chinese partner was selected through a competitive bidding process.

A separate agreement was signed between the Ministry of Energy and “China Energy Overseas Investment Co. Ltd.” for the evaluation and development of offshore wind energy in the Caspian Sea. The collaboration includes assessing wind potential, project planning, and phased development of a 2 GW offshore wind farm — from feasibility and financing to construction and long-term maintenance.

Another agreement involves a partnership between the Ministry of Energy, “China Datang Overseas Investment Co. Ltd.,” and “SOCAR Green” LLC for a floating solar power plant (100 MW) and a battery storage system (30 MW) on Lake Boyukshor. A joint project company will handle feasibility studies, design, financing, construction, and operations, with China Datang as the lead investor.

An additional implementation agreement was signed between the Ministry of Energy, “PowerChina Resources Limited,” and “SOCAR Green” to develop a 160 MW solar power plant. A dedicated project company and steering committee will be established. The project, expected to launch by 2028, will generate about 332 million kWh of electricity per year — saving 73 million cubic meters of gas and cutting carbon emissions by 160,000 tons. Future integration with a battery storage system is also under consideration.

The Ministry of Energy, along with “SOCAR Green,” “China Datang,” and “PowerChina Resources,” also signed a memorandum of understanding for the joint development of a 2 GW offshore wind energy project in Azerbaijan’s sector of the Caspian Sea. The parties will assess investment opportunities, establish legal and technical cooperation, and form a working group and steering committee to guide the project.

Finally, the Ministry of Energy signed a separate memorandum with the Electric Power Planning and Engineering Institute of China to collaborate on long-term planning for the integration of renewable energy into Azerbaijan’s power grid. The agreement calls for studies on transmission capacity and network readiness beyond 2028, with the goal of identifying cost-effective and technically viable solutions.

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