Development of power engineering after gaining independence (the third stage after 1991)

Development of the power engineering after gaining independence

After gaining independence, the strategic direction aimed at establishing mutually beneficial relations with the world's leading countries created an opportunity to attract foreign investments into the electric power system.

The commissioning of the Yenikənd Hydro Power Plant in December 2000 laid the foundation for a new stage in the development of the energy system. Decrees of the President of the Republic of Azerbaijan Ilham Aliyev on the State Programme for the Development of the Fuel and Energy Complex of the Republic of Azerbaijan (2005-2015) and Additional Measures to Improve the Electricity Supply in the Republic of Azerbaijan played an important role in energy development.

For the first time in the CIS, commissioning modern gas turbines of type Shimal-1 with a capacity of 400 MW and the construction of power plants of eight modules with a total capacity of 872.5 MW (including Nakhchivan Autonomous Republic) in different regions of the country, the installation of systemically important power transmission lines and substations ensured stability in power supply. The modern Sumgayit steam-gas type power plant was put into commissioned in 2009 and with a capacity of 525 MW, the Janub Power Plant in 2013, with a capacity of 780 MW. With a capacity of 400 MW, the North-2 Power Plant was commissioned in 2019. The Varvara Hydroelectric Station was re-commissioned after reconstruction. At the same time, on 11 February 2022, the Gobu Energy Hub - the 330/220/110 kV Gobu substation, with a load capacity of 1000 megawatts and the 385 MW Gobu Power Plant were put into operation.

The largest power station in the history of Azerbaijan’s independence, the 1880 MW "8 November" Power Station, was commissioned in June 2025.  

Total Capacity of the Electric Power System

The total electricity production capacity of Azerbaijan is 9732.5 MW. The country operates 24 thermal power stations with a combined capacity of 7903 MW, 65 hydroelectric power plants with a total capacity of 1443.5 MW, 9 solar power plants with a total capacity of 278.2 MW, 5 wind power plants with a total capacity of 63.5 MW, 37 MW solid waste power station, and 3 hybrid power stations with a total capacity of 7.3 MW.

Electric Power Relations with Neighboring Countries

Azerbaijan maintains electric power relations with its neighboring countries—Russia, Georgia, Iran, and Türkiye —and carries out electricity export-import processes with these nations. Since 2007, Azerbaijan has become an exporter of electricity to its neighboring countries.

Azerbaijan-Georgia Relations:

As part of the Azerbaijan-Georgia-Türkiye Energy Bridge Project, the 500 kV Samukh-Gardabani overhead transmission line (OHTL), commissioned in 2016, has a transmission capacity of 650 MW. Two OHTL connect Azerbaijan and Georgia’s power systems:

- 500 kV Samukh-Gardabani OHTL

- 330 kV Agstafa-Gardabani OHTL

Azerbaijan-Georgia Relations:

Electricity transmission capacity towards Russia is approximately 350 MW. The energy systems of Azerbaijan and Russia have been connected through the two interstate overhead transmission lines:

- The 330 kV Derbent OHTL connecting 330/110 kV Khachmaz (Azerbaijan) and 330/110 kV Derbent (Russian Federation) substations

- 110 kV Yalama OHTL connecting 110/35 kV Yalama (Azerbaijan) and 110/35 kV Bilici (Russian Federation) substations

Azerbaijan-Iran Relations:

The exchange of electric power between the energy systems of the Republic of Azerbaijan and the Islamic Republic of Iran is currently carried out through five operational power transmission lines (PTLs).  The total exchange capacity of these PTLs amounts to 600 MW:

- 330 kV Mugan PTL

- 230 kV Imishli PTL

- 110 kV Astara–Astara PTL

- 132 kV Araz–Araz PTL

- 132 kV Julfa–Julfa PTL

Azerbaijan–Türkiye connections:

There are three power transmission lines between the energy systems of Azerbaijan and Türkiye:

154 kV Igdir–Nakhchivan 1 OHTL

154 kV Igdir–Nakhchivan 2 OHTL

34.5 kV Sadarak OHTL

Work done in Karabakh and East Zangazur (2020–2025)

Power stations and substations in the liberated territories have been restored or reconstructed and commissioned. More than 1,000 km of high-voltage transmission lines have been built across Karabakh and East Zangazur. Through these lines, twelve newly constructed 110 kV substations have been interconnected in a ring configuration, creating a circular power supply network. The 110 kV circular scheme has been integrated with a 330 kV circular power supply system, for which the new 330 kV Jabrayil Energy Hub was built. The 330 kV Imishli, Aghjabadi, and Ganja substations have been expanded and reconstructed. As a result, the circular power supply system has ensured 100% stable electricity provision for the Karabakh and East Zangazur economic regions. Up to date, 38 power plants with a total capacity of 307 MW have been commissioned. The energy produced at these stations has been integrated into the national grid via the circular power supply system. During this period, 1.5 billion kWh of green energy has been generated by hydroelectric plants, saving 335 million cubic meters of natural gas and preventing the emission of 620,000 tons of carbon dioxide into the atmosphere. 

Lachin district:

-  The following small hydroelectric power plants (SHPPs) have been restored and commissioned: Gulebird – 8 MW Alkhasli – 6 MW Mishni – 8.25 MW Zabukh – 2.8 MW Garagishlag – 4 MW Mirik – 3.5 MW Ashagi Malibey – 3.1 MW Additionally, two digital junction substations have been commissioned: Lachin City 110/35/10 kV, 2×40 MVA Gorchu 110/35/10 kV, 2×25 MVA

Kalbajar District:

- The following power plants have been commissioned: Kalbajar-1 – 4.4 MW Meydan – 3.4 MW Gamishli – 6.3 MW Soyuqbulag – 5.3 MW Chiraq-1 – 8.3 MW Chiraq-2 – 3.6 MW Zar – 4.3 MW Chaykend-2 – 5 MW Ashaghi Vang – 8.6 MW Nadirkhanli – 8.8 MW Yukhari Vang Hydroelectric Power Plant – 22.5 MW  

Tartar District:

- In Sugovushan settlement, the Sugovushan Hydroelectric Power Plant Complex has been commissioned with a total capacity of 7.8 MW, consisting of: SHPP-1 – 4.8 MW and SHPP-2 – 3.0 MW

Zangilan District:

- Along the Okhchuchay within the Zangilan district, four hydroelectric power plants have been constructed and commissioned, each with a capacity of 10.5 MW, forming a total of 42 MW: Shayifli, Sarigishlag, Zangilan, Jahangirbeyli

Jabrayil District:

- Within the framework of the first phase of the Azerbaijan–Türkiye–Europe Energy Corridor Project, the Jabrayil Energy Hub was established, including the construction and commissioning of the 330/110/10 kV Jabrayil substation with a capacity of 2×250 MVA.

Shusha City:

- A new 0.3 km transmission line has been constructed from the Shusha substation, connecting it to the existing 110 kV Gorus–Khankandi PTL, thereby enabling power transmission toward Khankandi city. Additionally, 110 kV substations of various capacities have been constructed and commissioned in Fuzuli, Kalbajar, Jabrayil, Zangilan, Gubadli, Aghdam districts, and Shusha city.

 

 

In 2025, Aghdam Regional Digital Control Center and Training-Education Complex in Aghdam district, 35/10 kV Khojaly substation and Digital Control Center in Khojaly district, Sheher substation and Digital Control Center in Lachin city, Central Aran Regional SCADA Control Center in Yevlakh district were inaugurated.

 

Legislation in the field of electric power engineering

In November 2011, Azerbaijan signed the Memorandum of Understanding on Cooperation in the Field of Energy between the Republic of Azerbaijan and the European Union, marking the beginning of aligning the sector with international standards. Subsequently, Law on Efficient Use of Energy Resources and Energy Efficiency, Law on the Use of Renewable Energy Sources in the Electricity Production, Law on Energy, Law on Heat Supply were adopted. Additionally, the Law on Electric Power Engineering was revised and readopted to address modern challenges and ensure further development of the electric power sector.