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Akbar Novruz

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Work is continuing in Azerbaijan on the reconstruction and expansion of major electricity grid infrastructure as part of efforts to integrate large-scale renewable energy projects into the national energy system.

According to AzerNEWS, citing the unified public procurement portal, Azerenergy OJSC has launched additional work related to the relocation of the 330 kV two-circuit “Banka Solar Power Plant – Navahi Substation” transmission line outside the Shirvan National Reserve, as well as the relocation of the 330 kV Banka substation.

The process of selecting a contractor for the implementation of the works is currently underway.

The value of the project is estimated at approximately 7.3 million manats ($4.29 million).

As part of Azerbaijan’s renewable energy expansion strategy, the country aims to achieve a combined solar and wind generation capacity of 2 gigawatts by the end of 2027 and 8 gigawatts by the end of 2032.

According to the State Statistical Committee of Azerbaijan, wind power plants in Azerbaijan generated 327.5 million kilowatt-hours of electricity during January-April 2026, an increase of 321.9 million kilowatt-hours compared to the same period last year.

During the same period, solar power plants generated 121.8 million kilowatt-hours of electricity, reflecting a decline of 7.8 million kilowatt-hours year-on-year.

Overall, Azerbaijan’s electricity, gas and steam production, distribution and supply sector produced goods and services worth 1 billion 322.7 million manats ($778 million) in the first four months of 2026. The water supply and waste treatment sector generated output worth 201 million manats ($118.2 million).

At the same time, the implementation of the AZURE renewable energy integration project is continuing. The project aims to ensure the sustainable and secure integration of 2 gigawatts of renewable energy capacity currently under development in Azerbaijan.

A key component of the initiative is the construction of the 500/330 kV “Navahi” Energy Junction, which is expected to become the country’s main power hub. High-voltage 500 kV and 330 kV transmission lines are being extended from the substation toward various regions of Azerbaijan.

Last year, representatives of Azerenergy, the World Bank and Masdar held discussions at the Navahi Junction substation regarding the implementation progress and next stages of the AZURE project.

Within the first phase of the initiative, construction of the 330 kV section of the Navahi substation, as well as 500 kV transmission lines from Navahi to Absheron and 330 kV lines connecting the Bilasuvar and Banka solar power plants, is nearing completion using Azerenergy’s internal resources and partial state budget financing.

Completion of this phase is expected to ensure the integration of the Banka and Bilasuvar solar power plants into Azerbaijan’s national energy system.

During the second phase, financed by the World Bank, Azerbaijan plans to install the 500 kV section of the Navahi substation, transformers and related equipment, while also constructing 500 kV transmission lines linking Navahi and Mingachevir, along with 330 kV lines extending to Alat, Absheron and Gobu.

The second phase of the project is expected to be implemented over a three-year period.