In Azerbaijan, power generation capacity had declined due to aging power generation facilities, and the country was unable to meet its electricity demand. The shortfall in supply was compensated for through grid interconnection with Russia. As a result, half of the country’s population suffers power outages for an average of more than eight hours per day, and if new power sources are not developed, the country will be forced to further interrupt its power supply. In addition, 80 percent of the country’s power generation facilities were located in the western part of the country, while 60 percent of the electricity demand was concentrated in the eastern Absheron Peninsula. As a result, it was necessary to transmit electricity over a distance of approximately 300 kilometers between the east and west sides of the country. At the same time, fuel oil, the fuel for the western power plants, was transported from the eastern Absheron Peninsula, which resulted in transmission losses and fuel transportation costs that made the electricity supply inefficient. This cooperation project, through the construction of a gas-fired combined cycle power plant and related transmission facilities in the Absheron Peninsula region of eastern Azerbaijan, contributed to the alleviation of power shortages and sustainable economic growth by expanding the region’s stable power supply capacity and improving efficiency.
© Source JICA