Speech by Ilham Aliyev at the opening ceremony of the 240 MW “Khizi-Absheron” Wind Power Plant

- 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 milestone occasion. The plant that will enhance the energy capacity of our country is commencing its operation. I am confident 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 occasion 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 state agencies. In particular, the company, as an investor, will also implement the Caspian Sea desalination project, the first for our country.

I should also mention the efforts of PowerChina, which was involved in the construction of this station as the general contractor. This time, the company participated in the project as a contractor, but it will also take part in other projects, including as an investor. I am confident that all the plans this company has in Azerbaijan will be successfully implemented.

Of course, I should also acknowledge Azerbaijan’s energy professionals. 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 enormous professionalism and substantial funds. Considering that the construction of renewable energy plants in Azerbaijan will be very widespread in the coming years, the performance of Azerbaijani energy professionals must always be at a high level.

Here we also 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 Azerbaijan’s energy system have been identified as one of our top priorities in recent years. Over the past 20 years, our energy system—namely 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 stands at approximately 10,000 megawatts, which can rightly be described as a historic record. Given that many new renewable energy generation capacities will be commissioned in the coming years, this figure will certainly increase and will enable us both to meet growing domestic demand adequately and to 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 conventional 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 being developed 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 stands at 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 invite foreign investors to invest in this sector, as well as in other areas that require large amounts of electricity. In particular, I encourage investment in artificial intelligence, the establishment of data centers, and other energy-intensive industries. This invitation, of course, also applies to Azerbaijani companies.

Our country has an excellent investment climate. We have succeeded in attracting more than USD 300 billion in foreign investment to Azerbaijan. Today, our country’s financial position is very strong, and I have recently spoken at length about this issue. I should note that the reforms we have implemented in this area and the results we have achieved are recognized by the world’s leading rating agencies. It is no coincidence that Azerbaijan’s credit rating has been further upgraded, reaching investment grade with a positive outlook.

Our foreign debt is very low, amounting to just over 6 percent of our gross domestic product. Our foreign exchange reserves exceed our foreign debt by 16–17 times, placing Azerbaijan among the leading countries in the world by this measure.

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 favorable destination 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, given that our renewable energy potential will increase significantly, we must develop the infrastructure to store this energy. For the first time in our history, we are establishing a Battery Energy Storage System, or BESS, in Azerbaijan. The first project will have a capacity of 250 megawatts and is being implemented by “Azerenerji,” self-financed. However, as our renewable potential continues to grow, the number of such battery energy storage systems will need to increase, and I invite foreign investors to participate in 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 repeat that the creation of renewable energy in Azerbaijan is a large-scale project implemented by foreign investors. To date, 100 million USD 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 years, and not a single paragraph, not a single article, not even a single word in the adopted decisions and contracts has ever been—and will ever be—changed. This stability is a crucial factor in attracting foreign investors to our country. Azerbaijan is a reliable state, and our word is as trustworthy and binding as our signature.

When we look at developments in the energy sector as a whole, it is clear that energy security is increasingly coming to the fore. We have been working in this direction for many years. Our exports of oil, gas, oil products, electricity, petrochemical products, and fertilizers provide many countries with opportunities to ensure their energy security today. Azerbaijan is establishing itself as a responsible and reliable partner and has earned a strong reputation on the global stage.

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