Azerbaijan is set to take a major step toward expanding its renewable energy capacity with the Khizi-Absheron wind power plant, a flagship project expected to begin operations by 2025.
The $300 million project, fully funded by foreign investments and led by ACWA Power, is positioned to support Azerbaijan’s broader goals of economic diversification and green energy transition.
The Khizi-Absheron wind farm, which will be constructed across two key sites in the Khizi and Absheron districts, represents ACWA Power’s first foray into the Azerbaijani market.
The facility, featuring 37 wind turbines, is projected to have a generation capacity of 240 MW, enough to supply around 300,000 homes.
The plant will help Azerbaijan save 220 million cubic meters of natural gas each year, a significant step toward reducing fossil fuel dependency. By offsetting more than 400,000 tons of carbon dioxide annually, the project also advances the country’s carbon-neutral goals.
Javid Abdullayev, Director of the Azerbaijan Renewable Energy Agency (AREA) under the Ministry of Energy, confirmed during a recent event that the plant’s operations are slated to begin in the last quarter of 2025.
Speaking at the Baku Shipyard, where wind turbine blades were being delivered for the project, Abdullayev stressed the plant’s role in Azerbaijan’s green energy shift. “This project not only highlights our commitment to sustainability but also marks a milestone in Azerbaijan’s energy independence journey,” he said.
The Khizi-Absheron wind power plant will be constructed in two zones: Absheron and Khizi. The plant’s wind turbines, each with an impressive blade length of 84 meters and a tower height exceeding 100 meters, are being delivered and installed in batches.
According to Abdullayev, the foundation work for six turbines has already been completed, and by the end of October, parts for eight turbines will have arrived on-site.
The project’s timely progress is seen as a critical component of Azerbaijan’s efforts to modernize its energy infrastructure. Once fully operational, the wind farm will play a vital role in stabilising the national grid and contributing to the country’s ambitious renewable energy targets.
This aligns with the Strategic Roadmap for the National Economic Prospects, which seeks to diversify Azerbaijan’s economy by attracting foreign direct investment (FDI) into its non-oil sectors.
The Khizi-Absheron wind project was made possible through a partnership between Azerbaijan’s Ministry of Energy and ACWA Power.
The two parties signed an Implementation Agreement in January 2020, followed by a series of key contracts, including a Power Purchase Agreement and Transmission Connection Agreement, in December of the same year.
These agreements set the framework for the project and its long-term role in Azerbaijan’s renewable energy portfolio.
At the project’s groundbreaking ceremony in January 2022, President Ilham Aliyev of Azerbaijan and Saudi Arabia’s Minister of Energy, Prince Abdul Aziz bin Salman Al Saud, lauded the plant as a symbol of the growing cooperation between the two nations.
ACWA Power, known for its extensive portfolio of renewable energy projects across the Middle East and beyond, brings valuable expertise to this greenfield independent power project (IPP).
In addition to generating clean electricity, the plant’s ability to save natural gas presents a dual benefit. By freeing up natural gas for export, Azerbaijan stands to bolster its economic resilience while simultaneously reducing its carbon footprint.
The project also dovetails with other ongoing collaborations between ACWA Power and the Azerbaijani government. In early 2023, ACWA Power and the State Oil Company of Azerbaijan Republic (SOCAR) signed a Cooperation Agreement aimed at accelerating the development of renewable energy projects in the country.
The partnership was further strengthened with an additional agreement signed in April 2024, focusing on joint efforts to evaluate low-carbon projects, including the production of green hydrogen and fertilizers.
As part of their broader cooperation, SOCAR and ACWA Power are exploring the potential for producing green hydrogen, which could play a key role in decarbonizing SOCAR’s downstream assets, including its fertilizer production facilities.
The feasibility study, focusing on SOCAR’s carbamide plant, could lead to significant advancements in Azerbaijan’s low-carbon economy.
