3 Jun 2025 09:37

Azerbaijan agrees to work with China's CEEC on renewable energy projects totaling 360 MW

BAKU. June 3 (Interfax) - Azerbaijan's Energy Ministry and China Energy Engineering Corporation Limited (CEEC) signed an agreement on comprehensive strategic partnership in the energy sector at Baku Energy Week on Monday, the ministry reported.

"The document is aimed at expanding cooperation in the development of clean energy and modern energy systems in Azerbaijan and implementation of specific projects in this area," the ministry said in a press release.

The agreement calls for cooperation on the projects to build the 160 MW Fuzuli solar farm and a 200 MW wind farm in the Caspian Sea, as well as projects in hydropower and a green energy corridor.

"The agreement also encompasses cooperation on energy planning and network studies, the creation of a research center for developing the use of green energy and training of highly skilled workers in the area of renewable energy," the ministry said.

The ministry also signed an agreement for the lease of land for the 100 MW Gobustan solar farm project on Monday with Universal Solar Azerbaijan, the local subsidiary of China's Universal Energy Co. Azerenergy, meanwhile, signed a purchase-sale agreement for electricity and grid connection contract with Universal Solar Azerbaijan as part of this project.

The ministry also signed land leases with the local subsidiaries of Nobel Energy and Clean Energy Investment, Enerso Jabrayil and Clean Energy Jabrayil for, respectively, the 50 MW Ufug and 50 MW Shams solar farms in the Jabrayil district. These companies also signed contracts for the purchase-sale of energy and grid connection with Azerenergy, as well as joint balancing contracts with Norm and Azerenergy as part of these projects.

It was reported earlier that Azerbaijan expects to add 6.5 GW of generating capacity by 2030 with the construction of new renewable energy facilities. The country's energy system now has installed capacity of a little over 8 GW.

Universal Energy was declared the winner of an international tender to build the 100 MW Gobustan solar farm at the COP29 conference last November. The government of Azerbaijan and Universal Solar Azerbaijan signed the investment agreement for the project on April 22, 2025.

Universal Energy has said that the project will cost an estimated $51 million. The solar farm is expected to go into operation by the middle of 2026, after which it will generate about 180 million kWh of electricity annually.

It was also reported that Nobel Energy, a division of NEQSOL Holding, plans to complete the first 50 MW phase of a 100 MW solar farm in the Jabrayil district by 2027, with the remaining capacity to be added in subsequent years. This solar farm will generate about 110 million kWh per year.