Azerbaijan's 100 MW Gobustan solar plant begins operations
On September 18, 2026, Azerbaijan inaugurated the 100 MW Gobustan solar power plant in the Garadagh district near Baku. Developed by Universal International Holdings Limited, the plant will produce 200 GWh of electricity annually, increasing Azerbaijan's total operational solar capacity to 378.2 MW.
The Gobustan solar power plant, inaugurated on September 18, 2026, in Azerbaijan's Garadagh district, marks a significant advancement in the country's renewable energy sector. Developed by the Chinese company Universal International Holdings Limited, this plant is the first project initiated under Azerbaijan's inaugural solar auction. It boosts the nation's operational solar capacity to 378.2 MW, contributing to a broader goal of increasing renewable energy adoption in Azerbaijan. This 100 MW solar project was awarded through an auction process conducted in April 2024, with the winning bid of $0.0354 per kilowatt-hour announced in November 2024. Spanning a 300-hectare area, the plant is expected to generate approximately 200 GWh of electricity annually.
With this addition, the total installed renewable energy capacity in Azerbaijan has reached 2,170 MW across 85 facilities, accounting for 21.5% of the country's total energy capacity. The Azerbaijani government reports that there are currently ten operational solar projects within the nation, totaling 378.2 MW. Most of the country's renewable energy comes from hydroelectric power plants, which number 65 and contribute 1,443.5 MW. To further expand its renewable energy capacity, the government forecasts an additional 1.5 GW of projects to be operational by the end of 2027. The economic potential of green energy sources in Azerbaijan is estimated at 27 GW, with solar energy accounting for 23 GW of that total.
Several large-scale solar projects are currently under development in Azerbaijan. Recently, UAE-based developer Masdar announced that it has reached financial closure on the 315 MW Neftchala solar PV project, located in southeastern Azerbaijan. Additionally, Masdar plans to enhance the operational 230 MW Garadagh solar PV plant by adding at least 350 MW of solar capacity along with battery storage. Another project, in collaboration with Socar Green, a subsidiary of Azerbaijan’s state oil company, focuses on developing a 445 MW solar project in Bilasuvar. Azerbaijan is also taking steps to foster local manufacturing of solar energy technology. Plans are underway to establish a PV module factory in a free economic zone near Baku, which aims to boost the country's capacity to produce solar panels domestically. This development signifies a commitment to enhancing renewable energy generation while creating local job opportunities and stimulating economic growth in the region.
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