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Home Azerbaijan

Green energy and geopolitics — Azerbaijan’s strategic push in liberated territories

WNAM: by WNAM:
May 19, 2025
in Azerbaijan
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Green energy and geopolitics — Azerbaijan’s strategic push in liberated territories
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WNAM REPORT: The recent commissioning of the “Zangilan” and “Shayifli” hydroelectric power stations in Azerbaijan’s Zangilan district marks another major milestone in the country’s drive to integrate renewable energy across its liberated territories. Each with a capacity of 10.5 megawatts (MW), the plants were built on the Okhchuchay River and symbolize both technological progress and post-conflict reconstruction. Significantly, the inauguration of these stations was attended by President Ilham Aliyev, underscoring their national importance and symbolic resonance.

President Ilham Aliyev’s presence at the opening ceremony reinforced the strategic priority the government places on rebuilding the Garabagh and East Zangazur regions with sustainable, modern infrastructure. In his remarks, the President highlighted the critical role of renewable energy in the development of a self-sufficient and resilient Garabagh, framing the energy transition as a pillar of state-building and national revival.

Since their commissioning, the Zangilan plant has generated 25.1 million kilowatt-hours (kWh) of electricity, while the Shayifli station has produced 29.8 million kWh. For small-scale hydro facilities, these are solid performance figures, signaling efficient integration into the regional grid.

Strategic vision: Green energy as a tool of reintegration
The development of small hydropower facilities in Zangilan is not just a technical project, it is a political, economic, and environmental strategy. By building sustainable infrastructure in formerly occupied territories, Azerbaijan is reinforcing sovereignty, enabling economic development, and addressing climate challenges simultaneously.

The head of state has repeatedly framed the Garabagh region as a model for green transformation. The concept of the “Green Energy Zone,” endorsed at the highest levels of government, aims to ensure that all new development in the liberated territories adheres to sustainable principles. Small hydropower plays a key role in this vision, providing local, emission-free electricity in mountainous terrain ideally suited for such installations.

The Zangilan and Shayifli HPPs were constructed with speed and precision, showcasing the capacity of Azerbaijani institutions to deliver on post-conflict recovery. Their launch, attended by the President himself, also sends a message to internally displaced persons (IDPs) and the international community: the region is being reborn as a center of innovation, sustainability, and state presence.

Broader energy development in liberated territories
The Zangilan and Shayifli plants join a growing portfolio of energy infrastructure across the liberated territories. These include:

Gulabird HPP (Lachin District): With a capacity of 8 MW, this was the first hydropower station rebuilt after the Second Garabagh War and was inaugurated in early 2021.

Sugovushan HPP-1 and HPP-2 (Tartar District): Rehabilitated shortly after the region’s liberation, these stations support both electricity generation and agricultural irrigation.

Kalbajar and Lachin Hydropower Projects: Numerous small HPPs are under restoration or construction in these districts, both rich in water resources and hydropower potential.

Solar Energy Expansion: In tandem with hydropower, Azerbaijan is pursuing large-scale solar projects in Jabrayil and Fuzuli. The flagship project is the 240 MW Jabrayil Solar Power Plant, developed with UAE-based Masdar, making it one of the largest solar ventures in the South Caucasus.

These investments are part of a broader state strategy to reduce reliance on fossil fuels, diversify the national energy mix, and transform Garabagh into a renewable energy hub. The ultimate aim is full energy self-sufficiency for the region, with potential for electricity exports to neighboring countries, including those in the EU market.

The energy transition in liberated territories has significant economic and social benefits. Reliable and clean energy is a prerequisite for the resettlement of IDPs, the development of new housing and industry, and the creation of jobs. Moreover, the use of local renewable sources reduces the strain on the national grid and improves regional energy security.

Politically, these projects enhance Azerbaijan’s governance and presence in areas that were long outside its control. The presence of President Aliyev at the inauguration of the Zangilan and Shayifli plants sends a strong signal about the permanence and scale of the reconstruction effort. It also reinforces the state’s commitment to building sustainable, modern communities where displaced citizens can return and thrive.

Beyond their domestic impact, these energy developments carry international significance. As Azerbaijan positions itself as a reliable partner in the global green energy transition, its investments in renewable infrastructure, especially in previously conflict-affected zones, enhance its international standing. The involvement of foreign partners like Masdar also strengthens diplomatic and investment ties, particularly with Gulf countries and the European Union.

Moreover, energy self-sufficiency in Garabagh limits the vulnerabilities associated with transmission infrastructure and border tensions. With local generation, communities in Zangilan, Lachin, Kalbajar, and elsewhere can operate independently and sustainably, even under external pressure.

The inauguration of the Zangilan and Shayifli hydroelectric power stations, with the participation of President Ilham Aliyev, marks a key moment in Azerbaijan’s reconstruction of its liberated territories. These projects are emblematic of a broader national effort to turn post-war recovery into a sustainable, forward-looking transformation.

As more energy infrastructure comes online in Garabagh and East Zangazur, Azerbaijan is not only generating power, it is generating hope, resilience, and a new identity for regions once ravaged by conflict. Through renewable energy, the country is building a future rooted in sovereignty, sustainability, and strategic foresight.

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