Germany questions 'associate member' term for Canada

Increasing the share of renewable energy sources in Azerbaijan’s electricity system has become one of the main directions of the country’s energy policy in recent years. Thus, the commissioning of the 100 MW Qobustan Solar Power Plant in the Garadagh district is another stage in this process. The plant, which was inaugurated on September 16 in the presence of President Ilham Aliyev, will generate approximately 200 million kilowatt-hours of electricity annually.

One of the main economic benefits of the project for Azerbaijan is a certain reduction in the use of natural gas for electricity generation. No fuel is required to generate electricity at a solar power plant. Therefore, the electricity produced by Qobustan can potentially replace part of the electricity generated using gas at thermal power plants.

According to official calculations, the operation of the plant will save approximately 45 million cubic meters of natural gas annually. This figure may not appear large for Azerbaijan’s energy system. However, although this concerns only one project, the overall volume of savings could increase as renewable energy capacity expands.

There is another aspect to the issue. Azerbaijan is a producer and exporter of natural gas. Replacing part of the gas required for electricity generation with solar energy creates an opportunity to use that gas for other purposes. This can provide additional flexibility in supplying gas to industry and, under suitable conditions, expand export opportunities.

The Qobustan plant’s annual output of 200 million kilowatt-hours also demonstrates the scale of the project. Although the plant has an installed capacity of 100 MW, solar energy is not a continuous source, meaning it cannot operate at maximum capacity for 24 hours a day throughout the year. Therefore, the plant’s actual annual output is lower than its nominal capacity. This is one of the main characteristics of solar power plants.

Another result of the project is a reduction in carbon emissions into the atmosphere. According to official information, the Qobustan Solar Power Plant will prevent approximately 97,000 tons of carbon emissions annually. This figure does not represent direct financial income, but it is significant in terms of Azerbaijan’s transition toward a lower-carbon energy system.

One of the features that distinguishes the Qobustan project is that it was implemented through an auction mechanism. In 2023, a 300.77-hectare plot of land in the Pirshaat settlement of the Garadagh district was designated as a renewable energy area for the construction of a solar power plant. The site was subsequently put up for auction, and in 2024, China’s Universal International Holdings Limited won the auction.

This model is particularly important for Azerbaijan. The state creates the land and legal framework for renewable energy projects, while the investor participates in financing and implementing the project. The Qobustan plant is presented as the first renewable energy project in Azerbaijan implemented through an auction.

President Ilham Aliyev has repeatedly emphasized the special attention being paid to expanding renewable energy sources in Azerbaijan’s energy policy. The projects currently being implemented represent one of the practical results of this policy. With the commissioning of Qobustan, the total installed capacity of renewable energy sources in Azerbaijan is expected to reach 2.17 GW.

Hydropower plants account for the largest share of this capacity. The combined capacity of the country’s 65 hydropower plants is 1,443.5 MW. Wind power plants have a capacity of 306.5 MW, while solar power plants will have a capacity of 278.2 MW. In addition, hybrid and bioenergy projects are also included in the overall figure. As a result, the share of renewable energy sources in Azerbaijan’s total energy capacity rises to approximately 20.8 percent.

Azerbaijan’s renewable energy potential, however, is considerably larger than its existing capacity. The country’s economically viable renewable energy potential is estimated at 27 GW. Of this, 23 GW comes from solar energy and 3 GW from wind energy. These figures indicate that there is significant potential for new projects in the coming years.

The implementation of approximately 1.5 GW of new renewable energy projects is planned by the end of 2027. As these projects are implemented, the role of solar and wind energy in electricity generation could increase further.

As a result, the significance of the Qobustan Solar Power Plant is not limited to the creation of 100 MW of new generation capacity. The project makes a concrete contribution to Azerbaijan’s energy balance by generating 200 million kilowatt-hours of electricity annually, saving 45 million cubic meters of gas, and reducing emissions by 97,000 tons. From a broader perspective, the expansion of such projects increases the country’s opportunities to use its natural gas resources in areas other than electricity generation and creates conditions for greater diversification of energy sources within the energy system.