Demirören Holding and Partners Launch $475 Million Hydroelectric Project in Azerbaijan

Demirören Holding, in collaboration with ARGES Enerji and the Azerbaijan State Investment Company, has initiated a $475 million project to construct five hydroelectric power plants in Laçın and Kelbecer, Azerbaijan. This ambitious venture aims to generate a total capacity of 13.8 MW and is expected to be operational by 2025.

Why this matters: This project has significant implications for Azerbaijan's renewable energy sector and its commitment to sustainable energy solutions. The successful implementation of this project could lead to increased investment in renewable energy and a reduction in the country's carbon footprint.

The first phase of the project involves the construction of the Malıbey hydroelectric power station in Malibey village, Lachin district. This plant will have a capacity of 5.1 MW and is projected to produce 14.57 GW of electricity annually. The station will utilize European and Chinese technologies, marking a significant step in Azerbaijan's renewable energy sector.

Subsequent phases will see the construction of four additional power plants: Galacha-1, Galacha-2, and Minkend in Lachin district, and Tartar-1 in Kalbajar district. The combined capacity of these plants will be 13.8 MW, with an annual electricity production of 39.7 GW. The total cost of the project is $475 million, and the power plants are expected to have a service life of 30 years.

The initiative, guided by President Ilham Aliyev, aims to transform liberated territories into zones of alternative and eco-friendly energy. During the foundation-laying ceremony for the Malibay small hydroelectric power plant, Deputy Minister of Economy Anar Akhundov and President's Special Representative in Lachin district Masim Mammadov emphasized the project's significance in establishing a modern power supply system and enhancing regional infrastructure.

Masim Mammadov highlighted the potential for green energy in Lachin district, noting that nine small hydroelectric power plants have already been commissioned in the region, totaling 80 MW in capacity. He stated, *"A net zero emissions zone has been declared in the liberated territories of Azerbaijan, and the Malibay small hydroelectric power plant laid today in Lachin district exemplifies this policy."*

The project is expected to create 25 new jobs and will operate for 30 years. The power plants will be built using European and Chinese technologies, ensuring high standards and efficiency. This collaboration marks a significant investment in Azerbaijan's energy sector, contributing to the country's goal of increasing its hydroelectric power generation capacity by 2025.

Overall, the joint effort by Demirören Holding, ARGES Enerji, and the Azerbaijan State Investment Company represents a crucial milestone for Azerbaijan's renewable energy sector. The successful implementation of this project will not only boost the country's electricity generation but also reinforce its commitment to sustainable and eco-friendly energy solutions.

Key Takeaways

• $475 million project to build 5 hydroelectric power plants in Azerbaijan.
• Total capacity: 13.8 MW, expected to be operational by 2025.
• First phase: Malıbey hydroelectric power station with 5.1 MW capacity.
• Project aims to increase renewable energy and reduce carbon footprint.
• Expected to create 25 new jobs and operate for 30 years.