Azerenerji to build energy storage system for $59 mln

BAKU. Sept 22 (Interfax) - Azerenerji will build a battery energy storage system (BESS) with a capacity of 250 MWh in Azerbaijan, with the work to be carried out by Turkey's YEO Teknoloji Enerji ve Endustri A.S. (formerly YEO Elektrik Otomasyon A.S.), the Turkish company said in a statement on the social network LinkedIn.

"A contract has been signed between [YEO Teknoloji Enerji ve Endustri A.S.] and Azerenerji CJSC, the energy grid operator of Azerbaijan, for the financing-inclusive turnkey installation of a 250 MWh Battery Energy Storage System, with a total contract value of USD 58.6 million. The financing of the project, to be carried out under the scope of EPC-F (Engineering, Procurement, Construction and Financing), will be provided by local banks with a total repayment period of four years," the company said.

The new system will be a continuation of two BESS projects with a total capacity of 500 MWh, contracts for which with YEO Teknoloji Enerji ve Endüstri A.S. were signed in 2025. These systems were commissioned in Q2 2026. The implementation of the new project will make it possible to increase Azerbaijan's electricity storage capacities.

"Within the scope of the project, the engineering, procurement, construction, installation and commissioning of the battery, PCS, BMS and EMS systems, as well as the high-voltage transformer substation and grid integration, will be carried out. Construction works will commence promptly, and the entire system will be commissioned within one year," the company said.

The batteries for the project will be produced by REAP Battery - a subsidiary of YEO Teknoloji Enerji ve Endustri A.S.

As reported, OJSC Azerenerji (the state monopoly for the production and sale of electricity in Azerbaijan) opened the Absheron battery-based energy storage center with a total capacity of 250 MW and an energy storage capacity of 500 MWh in June 2026.

As part of the project, 50 batteries and 13 inverter containers were installed at the Absheron center. A special center for managing these energy storage systems has also been created here. Azerenerji concluded the contract for the construction of the BESS with the Azerbaijani branch of YEO Teknoloji Enerji ve Endustri A.S. The value of the contract amounted to $90.5 million.