BAKU, Azerbaijan, January 8. This is the first renewable power plant built by “ACWA Power” in Azerbaijan, but not the last one. The company has bigger plans, and the Government of Azerbaijan fully supports these plans, said President of the Republic of Azerbaijan Ilham Aliyev during his speech at the opening ceremony of Khizi-Absheron Wind Power Plant in Baku, Trend reports.

Speech by President Ilham Aliyev

• Dear ladies and gentlemen,

Dear guests,

My very warm greetings to all of you. It is a significant day in the life of our country today. We celebrate the commissioning of the “Khizi-Absheron” Wind Power Plant. This is a very significant event. The plant that will enhance the energy capacity of our country is already starting to operate. I am sure that the 240-megawatt plant will contribute to the overall development of our country.

I remember quite vividly that exactly four years ago, in January 2022, we laid the foundation of this plant in this very hall. Extensive work has been carried out over these years, and today we are celebrating this wonderful event together. First of all, I would like to express my gratitude to all the people and companies that have contributed to the construction of this plant, first and foremost to the investor “ACWA Power” and its managers. This is the first renewable power plant built by “ACWA Power” in Azerbaijan, but not the last one. The company has bigger plans, and the Government of Azerbaijan fully supports these plans. I should also note that “ACWA Power” is one of the leading companies in the world in this field. It is also interested in implementing new projects in cooperation with Azerbaijani institutions. In particular, the company will also implement the Caspian Sea desalination project, the first for our country, as an investor.

I should also mention the activities of “Power China”, which has participated in the construction of this station as a general contractor. This company participates in this project as a contractor, but it will also participate in other projects, including as an investor. I am sure that all the plans this company has in Azerbaijan will be implemented.

Of course, I should also acknowledge Azerbaijan’s energy workers. Because the commissioning of new generation capacities in our country in recent years has been both a very complex and responsible process. In addition, the integration of large volumes of renewable energy into our overall energy system, of course, requires great professionalism and a lot of money. Considering that the construction of renewable energy plants in Azerbaijan will be very widespread in the coming years, the activities of Azerbaijani energy workers must always be at a high level. Here we see a very successful example of international cooperation. I should also note that from now on, more and more foreign investors will be engaged in the development of renewable energy. However, Azerbaijani companies have also begun to take interest in this issue, and the construction of several solar power plants has already begun.

In general, I can say that the upgrade, modernization, and development of the energy system in Azerbaijan has been identified as one of the top priorities in recent years. It is possible to say that over the past 20 years, our energy system, namely our generation capacities, large-scale substations, and transmission lines, has been completely renovated.

Over the past 20 years, the generation capacities created in our country have increased by about three times compared to the entire previous period. Today, our generation capacity constitutes approximately 10,000 megawatts. This, if we may say so, is a historical record. However, given that many new renewable energy generation capacities will be put in place in the coming years, this figure will certainly increase and will enable us to both meet the growing domestic demand adequately and export electricity in larger volumes.

I should also note that when we celebrated the opening of a new power plant in Mingachevir last year, we were once again convinced that these two processes in Azerbaijan, namely traditional generation capacities and renewable generation capacities, should be carried out in parallel. Only then can we achieve the desired result. The generation capacity of the traditional power plant commissioned in Mingachevir last year is approximately 2,000 megawatts, and today Azerbaijan feels very comfortable in terms of energy supply and energy security. A 230-megawatt solar power plant was put into operation recently. Today, a 240-megawatt wind power plant is under construction, and three solar power plants are currently under construction in the liberated territories, in Jabrayil district. The total capacity of these three plants is 340 megawatts.

Today, renewable energy sources are developing in various parts of our country. The next large plants are to be opened in Bilasuvar, Neftchala, Nakhchivan, and also in the liberated territories. So far, they have been opened in Garadagh district, and today in Khizi and Absheron districts. In other words, the geographical location of Azerbaijan is such that it is possible to produce renewable energy in any region. I am not even talking about the potential of the Caspian Sea. According to international estimates, the wind potential in the Azerbaijan sector of the Caspian Sea is at the level of 157 gigawatts. In other words, this process will gain momentum in Azerbaijan in the coming years. Azerbaijan will become a country with a reliable and major electricity generation capacity in the region. I have no doubt about that. Therefore, I am inviting foreign investors to invest in this area, as well as in other areas that require large amounts of electricity. In particular, I invite them to invest in artificial intelligence, the creation of data centers, and other areas that require large amounts of energy. This also includes Azerbaijani companies.

Our country has a wonderful investment environment. We have been able to attract more than 300 billion dollars in foreign investment to Azerbaijan. Today, the financial situation of our country is very positive. I have recently spoken extensively on this issue. I simply have to say that the reforms we have carried out in this area and the successes we have achieved are also acknowledged by the world’s leading rating agencies. It is no coincidence that our credit rating today has been further improved, rising to the level of investment grade and a positive outlook.

Our foreign debt is at a very low level, accounting for slightly more than 6 percent of our gross domestic product. Our foreign exchange reserves exceed foreign debt by 16–17 times, making Azerbaijan one of the leading countries in the world in this respect. In other words, all these and other factors give reason to say that investment in Azerbaijan will bring benefits and profits. Today, Azerbaijan is a very good place for investment. There is political, economic, and social stability in our country. For five years, our country has officially been living in peace, and large-scale construction work is underway in Azerbaijan. Therefore, as evidenced by today’s ceremony, we can also see the confidence of foreign companies in us, and this confidence is fully justified.

Regarding future plans, considering that our renewable energy potential will significantly increase, we must create infrastructure to store this energy. For this purpose, for the first time in history, we are creating a Battery Energy Storage System in Azerbaijan. The first project is 250 megawatts. It is implemented by “Azerenerji” at its own expense. However, our growing potential will require the number of such battery energy storage systems to increase even more, and I invite foreign investors to contribute to this process.

As for generation capacities, it is sufficient to note that based on the signed contracts, wind and solar power plants with a total capacity of 6 gigawatts will be built by 2030, and overall 8 gigawatts by 2032. If we add the potential of hydroelectric power plants, our capacity will, of course, grow further. Over the past five years, we have built about 40 small hydroelectric power plants using public funds in Garabagh and East Zangezur. Today, their total potential exceeds 300 megawatts.

A map of potential hydroelectric power stations in the liberated territories has also been drawn up, and in that region alone, we will build small hydroelectric power stations with a capacity of about 500, perhaps even 600 megawatts. Almost half of it is already in place, and the entire country, including the liberated territories, is connected to a single grid, ensuring the sending and receiving of energy flows in any direction.

Today, by celebrating this remarkable event, we are both summarizing the work done and, most importantly, sharing our views on future plans. Let me say again that the creation of renewable energy in Azerbaijan is a large-scale project implemented by foreign investors. To date, 100 million dollars have been invested in these projects. I once again appreciate the activities of both foreign and local investors for this decision and encourage them again to invest in Azerbaijan. The state of Azerbaijan always protects foreign investment. Many of our oil contracts have been implemented for many years, and not a single paragraph, not a single article, not even a single word in the adopted decisions and contracts has been or ever will be changed. This is also a very important factor in attracting foreign investors to our country. Azerbaijan is a reliable state. Our word is as valuable and legal as our signature.

When we look at the processes taking place in the energy sector as a whole, we can see that today, perhaps, energy security is increasingly coming to the fore. We have been operating in this direction for many years. Our oil exports, gas exports, oil product exports, electricity exports, petrochemical products, and fertilizer exports create opportunities for many countries to ensure their energy security today. Azerbaijan is asserting itself as a very responsible and reliable partner and has earned a great image and reputation as a reliable partner on a global scale.

Dear friends, I congratulate you once again on this wonderful event and wish the station every success in its operation. Thank you!