Investment and grid integration on the agenda
AREA Deputy Director Fagan Abdurahmanov and Senior Advisor Habil Abdullayev represented the agency, which operates under Azerbaijan's Ministry of Energy, at the Connectivity Investment Conference on Energy Storage.
Abdurahmanov gave a presentation titled "Development of renewable energy and BESS in Azerbaijan" during the October 22 session "Developing Markets – Part 2." He outlined the country's renewable energy development, prospects for incorporating battery energy storage systems (BESS) into its power system, and opportunities to work with international financial institutions. A panel discussion followed, with participants' questions addressed.
The wider conference examined storage economics, investment opportunities and financing models, alongside the policies and regulatory mechanisms governing the sector. Representatives of Chinese companies and participants from other countries also presented work on developing and deploying storage technologies.
Existing cooperation with Chinese partners
The Beijing discussions followed earlier renewable energy cooperation between Azerbaijan and Chinese companies. During President Ilham Aliyev's April 2025 visit to China, the sides signed six cooperation documents, according to Azerbaijan's Ministry of Energy.
Those documents cover solar plants totaling 260 MW, a 100 MW floating solar plant paired with a 30 MW battery storage system on Lake Boyukshor, a 2 GW offshore wind project and a separate 2 GW wind project. They also address cooperation on renewable energy development and power-system planning.
In May 2026, AREA Director Javid Abdullayev said Chinese partners were helping Azerbaijan carry out a detailed technical assessment for future battery storage deployment. He also described a joint feasibility study by Tetra Tech and EPRA Consulting that focused on the secure integration of 2 GW of renewable capacity into Azerbaijan's power system by the end of 2027.
Battery projects and expansion plans
Azerbaijan's state power producer, AzerEnerji, has been developing utility-scale battery storage centers at the 500 kV Absheron and 220 kV Agdash substations, with a combined capacity of 250 MW / 500 MWh, according to ESS News. The Absheron system had been commissioned as of March 2026 and consists of 50 battery containers and 13 inverter containers.
AzerEnerji Deputy Chairman Rustam Gasimov said in May 2026 that 1,910 MW of renewable capacity was to be integrated into the grid by 2028, bringing the total, including existing capacity, to about 2 GW. He said Azerbaijan planned to raise battery storage capacity to 1,000 MWh by the end of 2028.
Another proposed storage project is part of a September 2026 collaboration agreement between UAE-based Masdar and Azerbaijan Green Energy Company (AGEC), ESS News reported. The companies agreed to explore an expansion of at least 350 MW at Masdar's existing 230 MW Garadagh Solar PV plant, together with a battery energy storage system of up to 200 MWh. They will also assess a 100 MW round-the-clock renewable energy project.
