JOINING THE WATERS OF THE ARAZ

Regrettably, water scarcity, affecting drinking water, irrigation, and power generation, is emerging as the foremost issue in numerous countries globally. In Azerbaijan, environmentalists have been raising concerns for years, highlighting the country's water resources' gradual diminution.

The triumph in the Patriotic War of 2020 marked considerable advancements in addressing this pressing issue, securing complete control over the strategic water resources of south-west Azerbaijan. In the past three and a half years, the abundant potential of the Lesser Caucasus rivers has been harnessed, reservoirs and HPPs have been refurbished, and the water infrastructure of the Khudaferin reservoir on the border river Araz, including the Khudaferin and Giz Galasy hydroelectric facilities, has been collaboratively constructed with Iran.

The inauguration of the two hydroelectric power plants catalysed the meeting between Presidents Ilham Aliyev and Seyed Ebrahim Raisi on May 19. Merely hours before the Iranian president's helicopter incident, he inaugurated these pivotal projects for both nations' infrastructure.

Years of Anticipation

Azerbaijan's collaboration with Iran in the electricity sector spans over half a century. It commenced with the Araz hydroelectric complex and a 22MW hydroelectric power plant on a segment of the border river Araz in the Nakhchivan Autonomous Republic in 1971. This successful joint venture laid the groundwork for an even more ambitious endeavor—the construction of a substantial reservoir on the border Araz River in southwest Azerbaijan.

Discussions on the Khudaferin reservoir began in the 1960s, and in 1977, Iran and the USSR signed an interstate agreement to implement this project. However, the Islamic Revolution in Iran and the subsequent conflict with Iraq delayed the works. In 1988, the USSR and Iran entered a long-term treaty on economic, trade, and scientific and technical cooperation, which included a bilateral agreement on constructing and operating the Khudaferin and Giz Galasy hydroelectric power plants. Yet, the onset of construction preparations coincided with the USSR's dissolution, halting the project once more. In 1992, an independent expert group was established by the Azerbaijani Cabinet of Ministers, and the designs for the reservoir and hydroelectric facilities were revised. Nevertheless, Armenia's aggression, which overtook south-west Azerbaijan's border regions in 1993, necessitated the cessation of all related works.

Subsequently, the Armenian occupation regime, controlling the Araz River bank, sought to convince Iran to jointly complete the hydro facilities. However, timely diplomatic efforts by Azerbaijan's national leader, Heydar Aliyev, succeeded in deferring this matter. Thereafter, Iran independently undertook the construction of a reservoir and hydroelectric facilities on the pertinent section of the border river.

Significant changes in the current situation arose after the "Agreement on cooperation between the Governments of Azerbaijan and Iran in the field of continuing the construction of the Khudaferin and Giz Galasy hydrosystems and hydro plants on the Araz River, their operation and use of energy and water resources" was signed in February 2016. The document affirms the principles of respect for the sovereignty and territorial integrity of Azerbaijan and Iran, and equal rights to the hydroelectric complexes' water and energy resources. It also specified that Iran would provide for the completion of the hydroelectric complexes and stations, as well as the protection of water and energy resources until Azerbaijan's territorial integrity was restored. The Agreement further prohibited the temporary or permanent transfer of these hydro-systems' protection and operation to third-country individuals or legal entities, ensuring exclusive usage by Azerbaijan and Iran. Additionally, it was agreed that the State border's current line on the reservoir's water surface would be determined and established post-filling of the hydro-systems.

Momentous Occasion

Soon after the East Zangezur and Garabagh economic regions' liberation from Armenian occupation, extensive development of the Lesser Caucasus' water-rich region's hydro potential commenced. Water reservoirs were rehabilitated, and the construction of three dozen small hydroelectric power plants began. Parallel efforts were made on the Araz River, home to the Khudaferin and Giz Galasy hydroelectric centres. Following the state head's directive to continue the hydroelectric power plants' construction and commissioning, Azerenerji JSC was designated as the project's client in 2021. Since then, Baku and Tehran have executed several documents outlining water resource management mechanisms, electricity sharing, and joint investment conditions for completing the reservoir's construction on the border river Araz.

By this year's first quarter end, the hydroelectric facilities' construction and equipment installation concluded, initiating the reservoirs' filling process. By May's second ten-day period, the Khudaferin reservoir amassed 503 million cubic meters, and the Giz Galasy reservoir 42 million cubic meters of water, representing 40% and 85% of their total capacities, respectively.

"The commissioning of the Khudaferin and Giz Galasy hydrosystems are historic events. I extend my deepest gratitude to all Iranian specialists, workers, and friends involved in constructing this colossal facility," President Ilham Aliyev remarked during the Araz border river hydro-systems' inauguration. "Today's ceremony is a testament to our enduring friendship and shared history. The historical significance of today's event is underscored by the unprecedented meeting of the presidents of Iran and Azerbaijan at the border—the border of friendship and brotherhood." Acknowledging Azerbaijan's ambitious energy sector plans, the head of state highlighted that the liberated regions of Garabagh, East Zangezur, and Nakhchivan have been designated as "green" energy zones. The construction of renewable energy generation facilities in these areas promises regional benefits. Over the past three years, hydroelectric power plants with a 270 MW capacity have been established in the territories freed from occupation. As per the approved program, these plants' capacity is set to increase to 500 MW within the next two to three years. Considering the resolved issues of power transmission line modernization between Iran and Azerbaijan and mutual supplies, these projects are poised to be mutually advantageous, emphasized Ilham Aliyev.

"Iran was one of the first nations to unequivocally and openly declare that Garabagh is the territory of Azerbaijan. I wish to reaffirm our readiness to showcase our collaboration based on the revival programme in this region, in Garabagh," stated President of the Islamic Republic of Iran (IRI) Seyed Ebrahim Raisi at the hydroelectric projects' inauguration ceremony. He mentioned that the construction of the Khudaferin Dam and hydroelectric projects has generated over 40,000 jobs. The activation of these facilities will enhance irrigation for farmlands and access to potable water, which is vital for the inhabitants of East Azerbaijan Province, Ardabil, Tabriz, and the border regions.

The contribution of the new hydropower facilities to the energy and irrigation sectors of Iran and Azerbaijan is immense. Equally significant are these collaborative projects as emblems of fortified political cooperation and mutually advantageous business relations between our nations. This theme resonated in the speeches of all the event's participants on May 19. The Iranian Government's subsequent declarations also echoed this commitment.

Comprehensive Advantages

The Khudaferin reservoir, the most extensive structure erected in the liberated territories, will, with the hydro-systems' commissioning, facilitate the shared utilization of the Araz River's water and energy resources with Iran. "The construction of Khudaferin hydroelectric complexes with a capacity of 1.6 billion cubic meters and Giz Galasy with a capacity of 56.75 million cubic meters, as well as Khudaferin and Giz Galasy hydroelectric power plants, based on Azerbaijan-Iran experience, will exemplify the effective employment of trans-boundary waters," remarked Azerbaijani Energy Minister Parviz Shahbazov.

The two HPPs situated on the Azerbaijan-Iran border boast a combined capacity of 280 MW. Upon reaching full operational capacity, they are anticipated to collectively generate 716 million kWh of electricity annually. Azerbaijan and Iran will equally share this output, with each receiving half. The electricity produced will conserve 80 million cubic meters of gas every year.

In May of the preceding year, the Garabagh region's largest 330/110-kilovolt junction substation, Djebrail, was commissioned to channel the electricity produced by the Khudaferin, Giz Galasy, and Gunesh hydroelectric power plants into the republic's unified power grid. This substation's establishment is pivotal for the power supply of the territories reclaimed from occupation. It is slated to connect to the BP Jabrayil solar power station and, eventually, to other nearby renewable energy sources (RES). If required, it could also facilitate energy exchanges with Iran via the planned joint transmission line. In the long term, this substation is expected to transmit electricity from the HPP and other renewable energy generators in Garabagh to the Jabrayil-Nakhchivan-Aghri transit route, thereby granting improved access to European energy markets through the Türkiye grid.

Another crucial aspect of the joint management of the Khudaferin reservoir with Iran, with a capacity exceeding 1.6 billion cubic meters, will be the irrigation of 260,000 hectares of arable land in south-west Azerbaijan. Initiatives in this vein have commenced. In the Jabrayil district, hydro-technical systems are undergoing restoration, irrigation collectors and waterways are being cleared of sediment, and five pumping stations have been activated, ensuring the irrigation of approximately 4,810 hectares of agricultural land.

Overall, Shahbazov believes that the Khudaferin and Giz Galasy projects, as integral components in the development of East Zangezur as a green energy zone, will catalyse the further broadening of cooperation among the region's nations in the realm of green energy. These infrastructural endeavours, bearing significant environmental, energy, and economic importance for Baku and Tehran, will forge a durable bridge of cooperation that fosters development, security, and friendship across the region.