6 documents on green energy have been signed with Chinese companies

During the visit of President of the Republic of Azerbaijan Ilham Aliyev to China, 6 documents on cooperation in the field of renewable energy were signed. These documents cover the construction of solar power plants with a total capacity of 260 MW, 100 MW floating solar power plant, 30 MW battery energy storage system, 2 GW offshore wind energy project, development of another 2 MW wind power project, as well as cooperation in the development of renewable energy sources and planning of the electric power system.

The investment agreement between the Government of the Republic of Azerbaijan and Universal Solar Azerbaijan LLC on the project of Gobustan solar power plant with a capacity of 100 MW in Azerbaijan was signed by the Ministry of Energy and Universal Solar Azerbaijan LLC. The investment contract provides for the construction and operation of a 100 MW solar power plant in Gobustan district. At the next stage, contracts for the purchase and sale of electricity, connection to the transmission network and lease of land will be signed with the company. The plant, which is scheduled to be commissioned in 2026, is expected to generate about 180 million kWh of electricity per year. This will save 39 million cubic meters of natural gas and reduce carbon emissions into the atmosphere by 86 thousand tons. Cooperation with a Chinese company on this project was determined through an auction.

The Ministry of Energy and China Energy Overseas Investment Co. Ltd. signed an Executive Agreement on the assessment, development and implementation of an offshore wind energy project in Azerbaijan. According to the agreement, cooperation will be carried out to assess the potential of wind energy in the Caspian Sea, planning and construction of projects in this area.  Within this framework, cooperation is envisaged on the evaluation, development, design, financing, engineering, construction, commissioning and maintenance of an offshore wind plant with a minimum capacity of 2 GW on a phased basis.

Another document was signed between the Ministry of Energy, China Datang Overseas Investment Co. Ltd and SOCAR Green LLC. In accordance with the Implementation Agreement on the evaluation, development and implementation of a 100 MW floating solar power plant with a 30 MW battery storage system on Lake Boyukshor, a feasibility study, design, financing, construction, operation and maintenance will be carried out through the newly created project company. China Datang Overseas Investment Co. Ltd will be the main investor.

In addition, an Implementation Agreement was exchanged on the evaluation, development and implementation of a 160 MW solar power plant project signed between the Ministry of Energy, PowerChina Resources Limited and SOCAR Green LLC. It is planned to create a special project company and a Steering Committee to implement the project. The document covers such areas as feasibility study, design, financing, construction, operation and maintenance of the project. The Ministry of Energy plans to provide support in the allocation of land, the issuance of appropriate permits and the use of local resources. The project also provides for the possibility of integrating an energy storage system in the future. The plant is scheduled to be commissioned in 2028, and it is projected to generate about 332 million kWh of electricity per year. This means saving 73 million cubic meters of natural gas and reducing carbon emissions by 160 thousand tons.

Between the Ministry of Energy, SOCAR Green LLC, China Datang Overseas Investment Co. Ltd and PowerChina Resources Limited signed a Memorandum of Understanding on the development of an offshore wind energy project with a capacity of 2 GW in the Azerbaijani sector of the Caspian Sea. Within the Memorandum, cooperation will be carried out on the assessment of investment opportunities and the establishment of appropriate technical and legal support mechanisms. A Steering Committee and a Working Group will be established to develop the project, as well as experts in commercial, legal and technical fields. The Ministry of Energy will provide support in obtaining appropriate permits, allocating marine territories and other necessary processes.

"A Memorandum of Understanding on renewable energy development and electric power system planning” was signed between the Ministry of Energy and the Electric Power Planning & Engineering Institute of the People`s Republic of China. The memorandum provides for conducting relevant studies in the transmission network in connection with the integration of renewable energy sources into the grid for the period after 2028. Based on the research results, it is planned to identify technically and economically effective solutions and prepare appropriate proposals. At the first stage, an assessment of the need for renewable energy sources will be carried out, and at the next stage, the integration of certain capacities into the transmission network will be studied.