Azerbaijan is becoming a leading energy generation center in the region

HEADLINE09.01.2026
Azerbaijan is becoming a leading energy generation center in the region

In the first days of 2026, Azerbaijan added another proud event to its new energy strategy. The commissioning of the “Khizi-Absheron” Wind Power Plant (WPP), built by the Saudi Arabian company “ACWA Power”, can be considered a new significant event in the energy history of our country. Speaking at the official opening ceremony of the station, President Ilham Aliyev stated that the launch of this 240-megawatt station will strengthen our country’s energy potential and contribute to its overall development.

“Khizi-Absheron” WPP is a huge energy project that Azerbaijan has created together with its close partners – the Kingdom of Saudi Arabia and the People’s Republic of China, and is a new page in the “green energy” agenda. This event is an example of Azerbaijan’s new energy solidarity with the world’s influential investors “ACWA Power” and “Power China”.

The commissioning of new generation capacities is both a very complex and responsible process. In particular, the integration of renewable energy sources into the energy system requires large-scale investments and great professionalism. In this regard, the commissioning of this renewable station thanks to four years of mutual active investment cooperation is the next success of the resolute policy pursued by our state, and the result of the tireless work of our local energy corps.

Azerbaijan, which has been constantly increasing its generation capacity over the past 20 years, has formed approximately three times more potential compared to previous years, and has built a stable system of approximately 10,000 megawatts, an energy security system. This is a historical record. The new power plant with two thousand megawatts in Mingachevir, which was put into operation last year alone, can play a decisive role not only in the uninterrupted and reliable energy supply of our country, but also in the supply of foreign countries.

In recent years, more attention has been paid to the construction of renewable energy infrastructures, and the creation of a huge investment coalition with foreign companies in this direction stems from the requirements of the clean energy transition strategy and the “Energy Grid” goals.

From this point of view, the “Khizi-Absheron” project gives the green light to the construction of the next renewable energy stations in Azerbaijan, which is resolutely moving towards the production and supply of “green energy”, motivates the involvement of the foreign business community in this field, and strengthens the successful example of international cooperation.

As Mr. President confidently said, from now on, more foreign investors will be involved in the creation of renewable energy sources. The favorable and healthy investment environment provided by Azerbaijan is very healthy, the state always protects foreign investments, our word is as valuable and legal as our signature.

In the context of all this, due to its geographical location, there are great opportunities for the production of renewable energy sources in other favorable regions, including Nakhchivan and the liberated territories. Also, the ecosystem of the Caspian Sea, whose wind potential alone is at the level of 157 gigawatts according to international assessment, increases the attractiveness of the energy potential.

Tax-customs and social benefits, and economic incentives applied in the liberated territories create greater interest in this region. The projects started in these territories, the construction of three solar power plants with a total potential of 340 megawatts in Jabrayil district, confirm that foreign investors’ trust and confidence in Azerbaijan is further strengthened. This mutual trust and active investment platform stipulates that in the coming years, new bridges will be built in our country in the construction of wind and solar power plants and other alternative energy infrastructures.

A map of the potential hydro power plants of the liberated areas has also been drawn up, and it is planned to sign framework agreements with foreign companies for the construction of small hydro power plants with a capacity of 500-600 megawatts.

Also, the Battery Energy Storage System is of particular importance in technological development for storing “green energy”, and foreign investment is of great interest in this area. Considering all this, Azerbaijan’s “green energy” sector will become a large investment-intensive sector. The investment path opened by the “Khizi-Absheron” Wind Power Plant, which currently has a project value of approximately 340 million dollars of foreign investment, will attract billions of dollars of investment to this sector in the future.

Renewable energy power plants, as a source of clean energy production, also improve the industrial sector and minimize the use of natural gas. For example, the “Khizi-Absheron” WPP alone will create an opportunity to save 220 million cubic meters of natural gas in the industrial sector of Azerbaijan. At the same time, this station will prevent the emission of more than 400 thousand tons of carbon dioxide into the atmosphere, which is one of the factors contributing to the goals of the Azerbaijani state to reduce carbon emissions.

With this event, Azerbaijan also demonstrates its commitment and responsibility to the obligations it has undertaken to the international climate family. Another point is that one billion kilowatt-hours of energy to be produced annually at the station will ensure the transition of residential and non-residential areas of Khizi and Absheron districts from traditional energy to clean energy.

In addition, renewable energy sources are also the basis of the technological infrastructure for digital development and the information technology sector. The main strength of the fiber-optic industry and data technology infrastructures is based on renewable energy. Therefore, Azerbaijan’s partnership with technology giants from Saudi Arabia, China and other countries will also ensure the diversification of the digital economy and green development. At the same time, Azerbaijan, which increases the production of “green energy” in its generation portfolio, will also export clean energy.

In the context of regional projects, Azerbaijan’s initiatives to diversify the renewable energy potential of the Caspian Sea and Central Asia and create routes for transportation to the Turkish and European markets also play an important role. In a word, the “green energy” policy pursued by Azerbaijan is entering a new stage by expanding the joint energy solidarity of all countries in the region.

Ramid Namazov

Milli Məclisin deputatı