Construction of a 235 km single-circuit 500 kV overhead transmission line (OHL) from Azerbaijan Thermal Power Plant (TPP) substation to Navahi substation is scheduled for completion by 2028, Report informs referring to Azerenerji OJSC's plan published on the World Bank (WB) website.
The construction is scheduled to begin in the second quarter of 2026 and be completed in the fourth quarter of 2027.
This work is part of the AZURE project.
The AZURE Project is a strategic project that aims to increase energy security and achieve sustainable energy management goals by harmonizing Azerbaijan's energy infrastructure with renewable energy sources. The project's main objective is to reliably and efficiently integrate variable renewable energy sources, such as solar and wind energy, into Azerbaijan's national grid.
The aim is to facilitate the connection of renewable energy power plants to the grid and reduce losses in energy transmission. Modernization of transmission infrastructure, in particular, aims to increase the capacity of aging transmission lines and ensure energy supply security by constructing new lines.
The project includes:
- Construction of the new Navahi Substation with voltage levels of 500/330/10 kV and a capacity of 2x500 MVA.
- Construction of new transmission lines, including: Construction of 330 kV single-circuit Alat FEZ SS - Navahi SS OHL - 22 km, Construction of 330 kV single-circuit Absheron WPP - Navahi SS OHL - 65 km, Construction of 330 kV single-circuit Absheron WPP - Gobu ES OHL -19 km (3 lines, 106 km).
The main line will be built parallel to the existing Navahi-Mingachevir line through predominantly flat and gently rolling agricultural terrain.
The World Bank will finance the connection of the Absheron-Garadagh wind farm and the expansion of the transmission network for $168.4 million through the International Bank for Reconstruction and Development (IBRD), including $18.6 million for contingencies.
The funding program includes two subcomponents.
Subcomponent 1.1: Connection of Absheron-Garadagh Wind Power Plant and 330 kV Expansion ($33.8 million), including new transmission lines: 65 km OHL single circuit 330 kV from Absheron Garadagh wind power plant to Navahi substation, 19 km OHL single circuit 330 kV from Absheron Garadagh wind power plant to Gobu PP substation, 22 km OHL double circuit 330 kV from Navahi substation to Alat substation, and expansion of 330 kV bays at Gobu PP substation.
Subcomponent 1.2: 500 kV Expansion ($134.6 million), including new transmission 235 km single circuit OHL 500 kV from Azerbaijan TPP substation to Navahi substation supply and installation of equipment for 500 kV part of Navahi (2x 500 MVA) substation expanding the 500 kV bays at Gobu and Azerbaijan TPP substations.
Azerenerji OJSC, in partnership with the World Bank, is implementing the AZURE project, which aims to securely and sustainably integrate 2 GW of renewable energy capacity currently under construction in Azerbaijan into the power grid.
The project includes the construction of one of the country's largest power facilities, the 500/330 kV Navahi junction, which will serve as a key distribution center. In parallel, high-voltage 500 and 330 kV transmission lines are being built in various directions.
The World Bank approved the AZURE project on March 28, 2025, and, in accordance with the Bank's Board of Directors' decision, an IBRD loan of $173.5 million was allocated to Azerbaijan for the modernization and expansion of energy infrastructure. This is expected to pave the way for private investment in the renewable energy sector, particularly in the development of onshore wind power.