Azerbaijan has commissioned the 100 MW Gobustan Solar Power Plant in Baku’s Garadagh district, marking the first renewable energy project in the country to be developed through a competitive auction.

The project was awarded to China-based Universal International Holdings Limited in 2024 following an auction for a 300.77-hectare renewable energy site designated by Azerbaijan’s Cabinet of Ministers the previous year. The plant is Universal Energy’s first renewable energy project in Azerbaijan.

The facility has been equipped with solar modules, field inverters and transformers, with cabling work completed ahead of commissioning. Annual electricity generation is expected to reach about 200 million kWh.

According to Azerbaijan’s Ministry of Energy, the plant is expected to save approximately 45 million cubic metres of natural gas each year and avoid around 97,000 tonnes of carbon emissions annually.

The commissioning was attended by Azerbaijani President Ilham Aliyev, Energy Minister Parviz Shahbazov, China’s ambassador to Azerbaijan Lu Mei and Universal International Holdings CEO Yi Nan.

The project forms part of Azerbaijan’s expansion of renewable generation and the introduction of competitive procurement for new clean-energy capacity. Universal Energy, headquartered in Shanghai, develops renewable energy and energy storage projects in several markets, including China, Kazakhstan and Uzbekistan.

Following the plant’s commissioning, Azerbaijan says total installed renewable generation capacity has reached about 2.17 GW, representing approximately 21.5% of the country’s total power-generation capacity. Hydropower remains the largest component, with 1.44 GW, followed by wind at 306.5 MW and solar at 378.2 MW.

The government plans to add about 1.5 GW of further renewable capacity by the end of 2027, using both domestic and international project partners.

Azerbaijan estimates its economic renewable energy potential at around 27 GW, comprising 23 GW of solar, 3 GW of wind, 520 MW of mountain-river resources and 380 MW of bioenergy. The country also estimates a much larger technical potential, including 157 GW of offshore renewable resources.