The initial stage of the Azerbaijan Scaling-Up Renewable Energy Project (AZURE), developed in collaboration with the World Bank, is nearing its conclusion, according to Azerenerji OJSC.
In this phase, Azerenerji has constructed a new high-voltage substation, including a 330 kV section, using its internal resources and partial support from the state budget. Major infrastructure installations are also being finalized, such as 500 kV transmission lines connecting Navahi to Absheron, and 330 kV lines extending to the Banka and Bilasuvar solar power plants. Having commenced in September 2024, most of the scheduled work has already been completed, and the final steps are now underway. Once completed, this will fulfill the connection obligations of the Banka and Bilasuvar solar plants to the national grid.
The second phase of the project will mark the beginning of financing by the World Bank. This phase includes the development of the 500 kV side of the Navahi substation, along with the acquisition and installation of transformers and related electrical infrastructure. Additionally, new transmission lines will be laid, connecting Navahi to Mingachevir with 500 kV lines, and to Alat, Absheron, and Gobu with 330 kV lines. The second phase is expected to be implemented over the next three years.
The core objective of the AZURE project is to ensure the secure and sustainable integration of 2 GW of renewable energy capacity into Azerbaijan’s power system. To achieve this, one of the country’s largest substations — the 500/330 kV Navahi Energy Hub — is being constructed as a central transmission hub. From this facility, high-voltage transmission lines will extend to various key regions across the country.
To review the project's status and next steps, Azerenerji recently hosted a strategic meeting at the Navahi Hub substation. The session included participation from senior officials of Azerenerji, representatives from the World Bank, and the renewable energy company Masdar.
The World Bank has allocated a $173.5 million loan to support the AZURE project, with a 15-year repayment term and a 5-year grace period, concluding in 2039. Additionally, the Azerbaijani government has contributed $31.2 million toward value-added tax and customs duty obligations related to the project.
https://report.az/en/energy/azerenerji-first-phase-of-azure-project-nearing-completion/