Azerbaijan Begins Construction on 250 MW/500 MWh Battery Projects

State-owned electricity generation and transmission company AzerEnergy has begun construction on a 250 MW/500 MWh battery energy storage system (BESS) project, the largest of its kind in Azerbaijan to date.

The systems are being built at 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. These 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 emphasizes that the new projects will enhance Azerbaijan’s energy self-sufficiency and guarantee stable grid performance, whether operating independently or in coordination with the synchronous power network of neighboring CIS states. As part of its wider decarbonization agenda, the company plans to integrate 2 GW of wind and solar capacity into the national system by 2027. Supporting this effort, construction is underway on the 500/330 kV Navahi Energy Junction — one of the country’s largest substations — equipped with high-voltage transmission lines spanning the nation.