Azerenerji: First phase of AZURE project nearing completion

The first phase of the Azerbaijan Scaling-Up Renewable Energy Project (AZURE), implemented with the World Bank, is nearing completion, Report informs, citing the Azerenerji OJSC.

"In the first phase of the AZURE project, the construction of a new substation using Azerenerji's internal capabilities and partially funded by the state budget, including its 330 kilovolt side, as well as the installation of 500 kilovolt transmission lines from Navahi to Absheron, and 330 kilovolt transmission lines to Bilasuvar and Banka solar power plants is already nearing completion. According to the implementation schedule, the main part of the work that began in September 2024 has been completed, and the first phase is in its final stage. With this, the obligation to connect the Banka and Bilasuvar solar power plants to the energy system will be fulfilled," the company said.

The second phase of this major energy project envisions the start of the World Bank's financing portion. The World Bank loan will fund the 500 kilovolt side of the Navahi substation, the purchase and installation of transformers and related equipment for the substation, as well as the construction of 500 kilovolt transmission lines from the mentioned substation to Mingachevir, including 330 kilovolt transmission lines to Alat, Absheron, and Gobu. This phase is planned to be implemented over a period of 3 years.

The main goal of implementing the AZURE project is to sustainably and safely integrate 2 gigawatts of renewable energy sources being built in Azerbaijan into the energy system. For this purpose, one of the country's largest substations - the 500/330 kV Navahi Energy Hub - is being built to function as the main hub substation, and high-voltage transmission lines of 500 and 330 kilovolts are being extended from there to various directions of the country.

A meeting was held at the Navahi Hub substation regarding the implementation, current status, and topical issues of the AZURE project. Discussions about the progress of the project and upcoming tasks were held during the meeting attended by the leadership of Azerenerji and authorized representatives of the World Bank and Masdar company.

The World Bank has allocated a loan of $173.5 million for the implementation of this project. The loan is being drawn for a period of 15 years with a 5-year grace period, and the loan repayment will end at the end of 2039. The Azerbaijan Government's participation share ($31.2 million) consists of VAT and customs duties payments.