Azerbaijan’s Ministry of Energy has signed three investment agreements for three separate solar projects involving cooperation from Chinese companies.

The first agreement is for the evaluation, development and implementation of a 160 MW solar plant. It is signed between the ministry, PowerChina Resources Limited and Socar Green LLC, a subsidiary of the State Oil Company of Azerbaijan (Socar).

A special project company and steering committee will be created to implement the project, with the ministry providing support in the allocation of land, the issuance of permits and use of local resources. A statement from the ministry adds that the plant is scheduled for commissioning in 2028.

The second agreement concerns a 100 MW solar power plant to be built in the Gobustan district of eastern Azerbaijan. It is between the ministry, Universal Solar Azerbaijan LLC and an unnamed Chinese company whose cooperation was determined through an auction.

The investment contract covers the construction and operation of the plant, with contracts for the purchase and sale of electricity and connection to the transmission network to be signed. It is envisaged the plant will be commissioned next year.

The third announced project is a 100 MW floating solar power plant with a 30 MWh battery storage system to be located on Lake Boyukshor, close to Azerbaijan’s capital Baku.

The agreement is in place between the ministry, Socar Green and China Datang Overseas Investment Co. Ltd, which is set to be the main investor. It covers a feasibility study, design, financing, construction, operation and maintenance, which will be carried out through a newly created project company.

The projects were signed as part of President of Azerbaijan Ilham Aliyev’s recent visit to China. Separate agreements for a 2 GW offshore wind project and another 2 MW wind project were also signed.

In November, China’s Huantai Energy Co., Ltd. secured a contract to build 100 MW of solar in eastern Azerbaijan, after submitting the lowest bid of $0.0354/kWh in the country’s first renewables auction.

Azerbaijan’s cumulative solar capacity stood at 293 MW by the end of 2024, according to figures from the International Renewable Energy Agency (IRENA).

Work on a 240 MW project in southwestern Azerbaijan began last November, the same month funding was secured for two solar projects in the southeast of the country that will total 760 MW.