An official opening ceremony of the 240-megawatt Khizi–Absheron Wind Power Plant, built by the Saudi company ACWA Power, is being held at the Gulustan Palace in Baku.
President of Azerbaijan Ilham Aliyev is delivering a speech at the event.
Speeches were also delivered by Deputy Minister of Energy of the Kingdom of Saudi Arabia Nasser Al-Qahtani, Ambassador of the People’s Republic of China to Azerbaijan Lu Mei, and Founder and Chief Executive Officer of ACWA Power Mohammad Abunayyan.
A short video presentation about the Khizi–Absheron wind power project was then shown.
President of the Republic of Azerbaijan Ilham Aliyev and Founder and CEO of ACWA Power Mohammad Abunayyan officially launched the 240-megawatt Khizi–Absheron Wind Power Plant.
The event concluded with a joint photograph.
During his speech, Ilham Aliyev noted that exactly four years ago, in January 2022, the foundation-laying ceremony for this power plant had taken place in this very hall:
“Over these years, active work has been carried out, and today we are celebrating this remarkable event together. First of all, I would like to express my gratitude to all the people and companies that contributed to the construction of this plant, first and foremost to the investor, ACWA Power, and its management. This is the first renewable energy power plant built by ACWA Power in Azerbaijan, but not the last one. The company has more ambitious plans, and the Azerbaijani state fully supports them. I should also note that ACWA Power is one of the world’s leading companies in this field and is simultaneously interested in implementing new projects in cooperation with Azerbaijani institutions. In particular, the same company, as an investor, is implementing the first Caspian Sea desalination project in our country.
I would also like to note the activities of PowerChina, which participated in the construction of this plant as the general contractor. This company took part in this project as a contractor; however, in other projects it will also act as an investor. I am confident that all the plans outlined by the company in Azerbaijan will be implemented.
Of course, the work of Azerbaijani energy specialists should be highly appreciated, because the commissioning of new generation capacities in our country in recent years has been both a very complex and a responsible process. The integration of large volumes of renewable energy into our overall energy system, of course, requires high professionalism and significant resources. Considering that in the coming years the construction of renewable energy plants in Azerbaijan will expand on a large scale, the work of Azerbaijani energy professionals must always remain at a high level. Thus, we see here a very successful example of international cooperation. I would also like to note that in the future, renewable energy generation will be carried out mainly by foreign investors. At the same time, Azerbaijani companies have also begun to show interest in this area, and the construction of several solar power plants has already started.”
The President noted that overall modernization and development of Azerbaijan’s energy system have been identified as one of the main priorities in recent years:
“It can be said that over the past almost 20 years, our energy system — that is, generation capacities, high-capacity substations, and transmission lines — has been completely renewed. Over the past 20 years, the generation capacities created in our country have increased by approximately three times compared to the entire previous period. Today, our generation capacities amount to about 10,000 megawatts. This is, so to speak, a historical record. However, taking into account that many new renewable energy generation capacities will be created in the coming years, this figure will undoubtedly increase, allowing us to adequately meet growing domestic demand and export electricity in even larger volumes.
I should also emphasize that last year, while marking the opening of a new power plant in Mingachevir, we once again became convinced of the need for the parallel development of these two processes in Azerbaijan — traditional and renewable generation capacities. Only in this case can we achieve the desired result. The generation capacity of the traditional power plant commissioned in Mingachevir last year is about 2,000 megawatts, and today Azerbaijan feels very comfortable in terms of energy supply and energy security. A 230-megawatt solar power plant was recently commissioned, today a 240-megawatt wind power plant is being commissioned, and in the liberated territories — in Jabrayil district — three solar power plants with a total capacity of 340 megawatts are under construction.”
Ilham Aliyev emphasized that renewable energy sources are currently being developed in various parts of the country:
“Additional large power plants are planned to be opened in Bilasuvar, Neftchala, Nakhchivan, and in the liberated territories. Previously, a plant was opened in the Garadagh district; today — in the Khizi and Absheron districts. In other words, the geographical location of Azerbaijan makes it possible to produce renewable energy in any region. I am not even referring to the potential of the Caspian Sea. According to international assessments, the wind potential of the Azerbaijani sector of the Caspian Sea amounts to 157 gigawatts. In the coming years, this process will gain wide momentum. Azerbaijan will become a very reliable country in the region with large generation capacity. I have no doubt about that.
Therefore, I invite foreign investors to work both in this sector and in other sectors requiring large volumes of electricity. In particular, I invite investment in artificial intelligence, the creation of data centers, and other industries that require substantial energy capacity. I also invite Azerbaijani companies.
Azerbaijan has developed a very favorable investment climate. We have been able to attract more than 300 billion US dollars in foreign investment. Today, the financial situation of our country is very positive. I recently spoke about this in great detail. I would only note that the reforms we have carried out in this field and the successes achieved are also recognized by the world’s leading rating agencies. It is no coincidence that our credit rating has been further upgraded to investment grade with a positive outlook.
Our external debt is at a very low level — just over 6 percent of gross domestic product. Our foreign exchange reserves exceed external debt by 16–17 times, and by this indicator Azerbaijan ranks among the leading countries in the world. All these and other factors give reason to say that investment in Azerbaijan will bring benefits and profits. Today, Azerbaijan is a very attractive destination for investment. Political, economic, and social stability prevail in our country. For five years, our country has officially lived in conditions of peace, and large-scale development work is underway in Azerbaijan. Therefore, today’s ceremony demonstrates both the trust of foreign companies in us and the fact that this trust is fully justified.”
The head of state also spoke about future plans:
“As for future plans, given that our renewable energy potential will increase significantly, we certainly need to create infrastructure for its storage. For this purpose, for the first time in our history, a battery-based energy storage system is being created in Azerbaijan. The capacity of the first project is 250 megawatts. It is being implemented by AzerEnerji at its own expense. However, our growing potential will require a further increase in the number of such battery energy storage systems, and I invite foreign investors to participate in this work.
As for generation capacities, it is sufficient to say that based on signed contracts, wind and solar power plants with a capacity of 6 gigawatts will be built by 2030, and 8 gigawatts by 2032. If we add the potential of hydroelectric power plants, our capacity will increase even further. Over the past five years, using public funds, we have built about 40 small hydroelectric power plants in Karabakh and East Zangezur. Today, their combined capacity exceeds 300 megawatts.
A map of potential hydroelectric power plants in the liberated territories has also been prepared, and in this region alone we plan to build small hydroelectric plants with a total capacity of about 500, and possibly even 600 megawatts. Almost half of this volume has already been implemented. The entire country, including the liberated territories, has been integrated into a single grid, ensuring the ability to transmit and receive electricity flows in any direction.
And today, while celebrating this landmark event, we are in a sense summing up the work carried out and, most importantly, sharing our vision for future plans. As I have emphasized, the development of renewable energy in Azerbaijan is being carried out within the framework of large-scale projects implemented by foreign investors. Hundreds of millions of dollars have already been invested in these projects. Once again, I highly appreciate the activities of both foreign and local investors who made this decision and once again call on them to invest in Azerbaijan.
The Azerbaijani state always protects foreign investments. Many of our oil contracts have been successfully implemented for many years, and not a single paragraph, clause, or even a single word in the adopted decisions and contracts has been changed or will be changed. This is a very important factor for attracting foreign investors to our country, because Azerbaijan is a reliable state. Our word is as valuable and legally binding as our signature.
Looking at the processes taking place in the energy sector as a whole, we see that today issues of energy security are coming to the forefront, perhaps even more clearly. We have been consistently working in this direction for many years. The export of our oil, gas, petroleum products, electricity, petrochemical products, and fertilizers enables many countries to ensure their energy security. Azerbaijan demonstrates itself in this process as a very responsible and reliable partner and has earned a positive image and reputation as a dependable partner on a global scale.”
