AzerEnergy is building a 250 MW/500 MWh battery energy storage system (BESS) projects – the largest of their kind in the country.
The systems are being built on two key locations – the 500 kV Absheron substation near the capital and the 220 kV Agdash substation in central Azerbaijan. According to AzerEnergy, construction is in progress, and key system components are being delivered to the sites.
"The deployment of battery systems at this scale marks a first not only for Azerbaijan, but for the entire Commonwealth of Independent States (CIS) region," the utility said in a press release.
These battery energy storage system (BESS) installations will improve grid stability, enable frequency regulation, compensate for active power deficits, meet peak loads, and smooth load curves during sunset hours. Both sites will also have black start capability to help restore the grid in the event of a major outage.
AzerEnergy notes that these projects will strengthen the country's energy independence and ensure reliable operation of the grid in both parallel and island modes within the synchronous power zone shared with neighboring CIS countries.
As part of broader decarbonization efforts, AzerEnergy aims to integrate 2 GW of solar and wind power into the national grid by 2027. To support this goal, it is constructing the 500/330 kV Navahi Energy Junction – one of the country's largest substations – featuring high-voltage transmission lines that extend across Azerbaijan.
While AzerEnergy touts its project as the region's largest battery energy storage system (BESS), a significantly bigger standalone battery system is taking shape in neighboring Uzbekistan. During COP29 in Baku, Saudi-based developer ACWA Power received contractual priority to develop a 2 GWh BESS project, allowing the company to offer competitive tariffs. The agreement is valid for two years, with the option for extension by mutual consent. Both parties will collaborate on feasibility studies to identify optimal locations.
In its latest move, ACWA Power, in partnership with the Asian Development Bank (ADB), has signed a $51 million loan package to develop the Nukus 2 Wind and Battery Energy Storage Facility in the Qoraozak district of the Republic of Karakalpakstan, Uzbekistan.
The project, initiated last year by ACWA Power Beruniy Wind FE LLC, includes a 200 MW wind farm and a 100 MWh battery storage system, along with associated transmission infrastructure. It is billed as Central Asia's first utility-scale wind + BESS project.
