BRIGHT PROSPECTS

Restoration of the territorial integrity of Azerbaijan opens up wide opportunities for using the available economic potential of the territories liberated from the Armenian occupation. Electric power sector, in particular renewable and alternative energy sources (RES), will play an instrumental role in this context.

Azerbaijan’s leadership has already set the task of developing green energy in the liberated territories. Available water resources and the potential development of solar and wind energy in this region leave no doubt that the Green Energy Concept in Garabagh can be implemented very successfully.

Towards green energy

“There are enough opportunities for the development of green energy in the liberated territories. This region will become a model for the whole world as a green energy zone. At the same time, we must use the state-of-thee-art technologies, the most economically rational, energy-saving technologies for the development of green energy, including from water, wind and sun,” President Ilham Aliyev said in January at a meeting on the results of 2020. He noted that it is necessary to involve foreign partners and investors in this work, as well as to create conditions for local companies.

Although the development of the renewable energy sector in Azerbaijan is only at the beginning stage, foreign companies have shown great interest in the first and so far the only tender held for the construction of solar and wind power plants in Absheron. Thanks to favourable conditions and interesting investment projects, this is also possible to implement in Garabagh.

In general, it is expected that the significant development of the renewable energy sector in Azerbaijan will take place in the next ten years. Government of Azerbaijan expects to bring the share of RES in the country's total energy capacity to 30% by 2030.

German company VPC hired as a consultant believes it is possible to achieve this target through the construction of new power plants using renewable energy sources with a total installed capacity of 1,500 MW. The company offers a three-stage option for the implementation of the task: to build new facilities with a capacity of 440 MW in 2020-2022, 460 MW - in 2023-2025. and 600 MW - in 2026-2030.

To develop the renewable energy sector in the liberated territories, the Azerbaijani Ministry of Energy has identified 8 promising sites covering a total area of 14,400 hectares for the construction of solar power plants with a total capacity of 7,200 MW (HPPs) in six districts (Fuzuli, Jabrayil, Zangilan, Gubadly, Lachin and Kalbajar). However, since part of these lands will be used for agricultural purposes, the real potential of solar power plants will be more than 4,000 MW.

“For the construction of wind power plants in Lachin, 2 sites (8,000 hectares and 4,300 hectares) have been selected. One sites covering an area of 5,300 hectares has been selected in Kalbajar. In general, the potential for the production of wind energy in the mountainous part of these regions is initially estimated at 500 MW,” ministry said.

According to the Ministry's estimates, Kalbajar and Shusha also have significant reserves of thermal water. “In Kalbajar, these reserves reach 3,093 cubic meters daily, while in Shusha - 412 cubic meters daily. We will study the possibility of using thermal springs for energy purposes in these districts,” Ministry of Energy said.

In addition, there are also coal deposits in Garabagh. For example, the reserves of coal in the village of Chardagly (Terter) reach 8.5 million tons.

By the way, the ministry has already started the development of the Green Zone concept in Garabagh. It also started to attract foreign investors to green energy projects.

In addition, the ministry is making a list of small hydroelectric power plants in the liberated territories. “According to primary data, the number of small hydroelectric power plants in the liberated territories reaches 30, but most of them are unusable. We have already started the restoration of three small hydroelectric power plants,” Energy Minister Parviz Shahbazov said.

In short, Garabagh can become an attractive location for foreign investors wishing to invest in the construction of energy facilities for renewable energy, considering that the Azerbaijani government is likely to offer tax and other benefits for infrastructure energy projects that will be implemented in the region.

Restoration of energy infrastructure

Meanwhile, works on the restoration of the energy infrastructure in Garabagh have already started.

Azerbaijan has always paid special attention to the economic development of Daghlig Garabagh, given its huge industrial potential. Garabagh has been one of the most advanced economic regions of the Azerbaijan SSR in terms of the composition and level of development of the mining industry and agriculture. The region had an extensive energy infrastructure, which satisfied the demands of the time.

After the occupation of Daghlig Garabagh and adjacent territories by Armenia, the entire energy infrastructure of the region was largely destroyed or looted. Once there were 20 substations with a total capacity of 858.6 MVA in 10 districts of the power grid (Shusha, Khojaly, Khojavend, Lachin, Gubadly, Jabrayil, Zangilan, Fuzuli, Kalbajar and Aghdam), including power lines, transformers and other equipment.

Works on the restoration of energy facilities have already started in Fuzuli, Jabrayil and Hadrut.

In addition, Azerenerji OJSC has recently begun the restoration of two small hydroelectric power plants, Sugovushan-1 and Sugovushan-2, with a total capacity of 7,800 MW in the village of Sugovushan. Armenian invaders caused damage to both hydroelectric power plants, dismantled and took away the parts, having destroyed what was left behind. However, it is possible to repair the plants. Damage caused to the power plants has already been calculated, with design works ready to restore them. Restoration works will take 3 months. The generated power will be supplied to the general energy system of Azerbaijan, as well as to the villages of Sugovushan and Talish.

As part of restoration works in Lachin, the repair of the small HPP Gülebird (8 MW) is also underway. Equipment damaged during the war is replaced or reconstructed, including the generators, control panels and transformers. At the same time, a damaged water pipe from the Hakari River to the hydraulic units is being restored. It is planned to put the HPP into operation soon. At the first stage, HPP will supply power to military units in Lachin and Gubadly. In the future, the electricity will be supplied via a high-voltage line to a new 110 kV substation, which is planned to be built in Gubadly.

In addition, Azerenerji will build 110 kW substations in Aghdam, Fuzuli, Gubadly and Kalbajar. Italian company Ansaldo Energia was attracted as a supplier of equipment (5 million euros) for this project. The equipment should be delivered by April. It is planned to put the substations into operation within 6 months.

In addition, the construction of a 110 kV substation has already begun in Shusha. It is equipped with modern equipment, and the building itself will be built in the national style.

New power lines are laid from Imishli to the liberated lands of Azerbaijan.

In general, it is planned to build a 308-kilometer transmission line in Fuzuli, Jabrayil, Zangilan, Gubadly, Lachin, Shusha, Aghdam and Kalbajar and create a single 110-kilovolt network, which will ensure reliable power supply to the region.

Shukurbeyli substation will be restored in Fuzuli in May 2021. An additional high-voltage power line is laid to increase the capacity of the substation, which will supply power to most of the liberated lands.

Electricity supply to Shusha began on January 16. During his speech in Shusha, President Aliyev spoke about a new 75-km long high-voltage line to illuminate and develop the city. “In a short period of time, these pillars have been installed in an area with difficult terrain. This suggests that life will return to Shusha in the near future,” Mr. Aliyev said.

Rebirth of the old project

The end of the Second Garabagh War gave new life to another project, the construction of the Khudaferin hydroelectric power plant along the Araz River.

In February 2016, an Agreement on Cooperation was signed between the governments of Azerbaijan and Iran to continue the construction, operation, and use of energy and water resources of hydropower facilities and hydropower plants Khudaferin and Gyz Galasy on the Araz River. This document is a continuation of the previous agreement ratified and implemented in 1989.

However, in 1992, Azerbaijan stopped the construction of the Khudaferin hydroelectric power due to the occupation of Jabrail by Armenia. Although Iran continued the construction of the facility on its territory. Finally, Azerbaijan will again join the project supplying the complex with two hydroelectric units (50 MW each).

Gyz Galasy hydroelectric power plant, which is also planned to be constructed on the Araz River, will also consist of two hydroelectric units (20 MW each). Iran continues the construction.

As of today, the construction of plants are close to completion. Thus, the Khudaferin and Gyz Galasy plants are 94% and 90% complete, respectively. According to the Ministry of Energy, the hydropower facilities and HPPs Khudaferin and Gyz Galasy will allow Azerbaijan to generate 368 million kWh of power annually, to establish irrigation of 260,000 hectares of arable lands. In general, the commissioning of these facilities will allow the two countries to jointly use both electricity and water resources for irrigation.

“At the same time, we are planning the construction of hydroelectric power plants in Kalbajar and Lachin as well. Armenians destroyed 13 hydroelectric power plants. We will build them anew... The commissioning of these stations should return the population and boost the restoration of industrial and economic activity on these lands," President Aliyev said.

Liberation of the occupied territories has set new important tasks for Azerbaijan – the restoration of communications and infrastructure to ensure normal life in these territories, the return of Azerbaijani refugees to their places of residence, creation of new industrial facilities, development of agriculture and transport network. It is simply impossible to imagine all this without the electric power industry. That is why we can say that the authorities will take care of creating all the necessary infrastructure to turn Garabagh into a paradise of the South Caucasus.

In addition, the restoration of the energy infrastructure in Garabagh, along with the construction of new facilities, including for the renewable energy sources, will also play an instrumental role in expanding Azerbaijan’s export potential.