Saudi energy giant expands investment with major water and wind projects

Azerbaijan is poised to take a significant step forward in both renewable energy and water infrastructure, as Saudi Arabia’s ACWA Power prepares to implement a large-scale seawater desalination project alongside its expanding renewable energy portfolio in the country. The announcement comes amid broader global and regional efforts to diversify energy sources and enhance climate resilience.

The planned desalination facility, with a capacity of 300,000 cubic meters per day, represents one of the largest water infrastructure projects in Azerbaijan’s history and will be built near Baku at the Sumgayit Chemical Industrial Park. The project was awarded to ACWA Power following a public-private partnership (PPP) tender, and a Public-Private Partnership Agreement valued at approximately USD 400 million has already been signed with the Azerbaijan State Water Resources Agency. The agreement covers the design, construction, financing, ownership, operation, and maintenance of the facility over a 27.5-year period, after which it will be transferred to the state agency.

This initiative comes at a time when Azerbaijan is placing increased emphasis on water resource management and water security, recognizing that a significant share of the country’s water resources originates outside its borders. Desalination helps address growing demand in urban and industrial centers such as Baku and the surrounding Absheron Peninsula, which rely heavily on external water sources.

Officials and experts have highlighted the strategic importance of diversifying water supply to complement traditional freshwater sources, especially in the face of climate change and increasing urbanization. By securing a reliable, high-capacity source of drinking water, the project is expected to significantly enhance water resilience for households, industry, and public services.

ACWA Power did not arrive in Azerbaijan with its desalination plans alone. The company has already established a strong presence in the country through its 240 MW Khizi-Absheron Wind Power Plant, which was inaugurated recently and marks the largest renewable energy project of its kind in Azerbaijan and the wider Caucasus region. That project, co-financed by international lenders including the OPEC Fund for International Development and the European Bank for Reconstruction and Development, illustrates how foreign direct investment can complement national energy diversification goals.

The wind plant, divided between Absheron and Khizi with a total of 37 turbines and producing enough clean electricity to power over 300,000 households, will also reduce natural gas consumption and cut hundreds of thousands of tons of carbon emissions annually once fully operational.

ACWA Power’s leadership sees Azerbaijan as more than just a project location. Selim Guven, Head of ACWA Power for Trkiye and Azerbaijan, emphasized that the desertion plant is part of a broader cooperation strategy, noting that Azerbaijan’s strong energy potential and commitment to renewables create favorable conditions for long-term investment. Guven has also mentioned plans to develop energy export interconnection lines that could enable wind and solar power capacity in Azerbaijan to reach markets such as Europe, enhancing regional energy integration.

The inland desalination project is expected to help Azerbaijan not only address domestic water needs but also increase resilience against climate variability and manage long-term resource scarcity. It aligns with national water strategies that prioritize efficient resource use and support sustainable development goals.

Internationally, ACWA Power’s involvement underscores the growing trend of integrating energy transition projects with critical water infrastructure, which is increasingly seen as a key feature of climate-resilient development. The company, renowned as one of the largest private water desalination operators globally, brings extensive experience in deploying large-scale water technology solutions in multiple regions worldwide.

For Azerbaijan, the combined momentum of renewable energy expansion and the deployment of advanced water infrastructure signals a maturing sustainability landscape.

While renewable generation directly supports reductions in fossil fuel dependence, the desalination plant addresses another pillar of modern infrastructure: reliable access to freshwater. By attracting major foreign investment and leveraging public-private partnership frameworks, the country is building foundations for a more resilient and diversified economy.

Azerbaijan-China partnership deepens across economy, transport, and education

In recent years, Azerbaijan-China relations have demonstrated clear upward momentum, marked by a growing number of high-level visits, expanding economic ties, and deepening cooperation across strategic sectors. Against the backdrop of shifting global power balances and the restructuring of international supply chains, Baku’s engagement with Beijing reflects a deliberate and forward-looking foreign policy choice.

Developing relations with China, one of the world’s leading economic and political powers, has become one of Azerbaijan’s key foreign policy priorities. Since the establishment of diplomatic relations on April 2, 1992, bilateral cooperation has evolved steadily, reaching a strategic level over the past few years. This trajectory is not accidental but the result of consistent diplomatic engagement and shared long-term interests.

At the political level, relations between Azerbaijan and China are underpinned by strong mutual trust between President Ilham Aliyev and Chinese President Xi Jinping. This high degree of political confidence is reflected in regular contacts and symbolic gestures, including President Xi being among the first world leaders to congratulate President Ilham Aliyev on his re-election. Such signals carry particular weight in diplomatic practice, especially in relations with China, where continuity and trust are key pillars of foreign engagement.

President Ilham Aliyev has described the strengthening of ties with China as one of the most important achievements of Azerbaijan’s foreign policy in 2025. In his assessment, the Joint Declaration on the Establishment of a Comprehensive Strategic Partnership, signed during his state visit to China in April last year, represents a milestone in bilateral relations. This declaration elevated cooperation to a new political framework, providing institutional and strategic depth to Azerbaijan-China ties.

The political framework has translated into tangible economic results. During President Aliyev’s state visit to China, 20 cooperation documents were signed, covering a broad range of areas including trade, energy, transport, science, education, culture, and media. As a result, bilateral trade turnover has reached a record level, exceeding $4 billion.

Chinese investment activity in Azerbaijan has also intensified, particularly in the green energy sector – an area aligned with Azerbaijan’s long-term development strategy and its commitments to energy transition. Chinese companies are involved in the construction of solar and wind power plants, power generation infrastructure, and the production of electric buses, positioning Azerbaijan as an emerging hub for green energy development in the region. This growing investment cooperation reflects China’s broader global strategy of supporting sustainable infrastructure projects, while allowing Azerbaijan to diversify its economy beyond hydrocarbons.

One of the most strategically significant areas of cooperation between Azerbaijan and China is transport and logistics. Azerbaijan occupies a central position along the East-West transport corridor, also known as the Middle Corridor, which connects China to Europe via Central Asia and the Caspian Sea.

President Ilham Aliyev has noted that China will be the main driver of future growth in freight traffic along this route. China’s multibillion-dollar investments in railway infrastructure across Central Asia – including projects through Kyrgyzstan and Uzbekistan toward the Caspian Sea – signal Beijing’s long-term commitment to this corridor. Once operational at full capacity, these routes are expected to significantly increase cargo flows to Azerbaijan, strengthening its role as a key logistics hub.

In this context, Azerbaijan is not merely a transit country but an active stakeholder in shaping a reliable, diversified alternative to traditional maritime routes, particularly amid global supply chain disruptions.

Beyond economics and geopolitics, Azerbaijan-China cooperation is expanding into science, education, and people-to-people diplomacy – areas that ensure long-term sustainability of bilateral relations. A recent example is the interest expressed by China’s Hubei International Professional Exchange Association in establishing partnerships with Azerbaijani scientific institutions.

During a meeting with Aghshin Aliyev, Head of the Azerbaijani Language Department at Beijing Foreign Studies University, the association’s leadership highlighted opportunities for joint research projects. These discussions reflect a broader trend: academic exchanges between Azerbaijani and Chinese universities and research centers are intensifying, supported by the comprehensive strategic partnership framework.

Founded in 1988, the Hubei International Professional Exchange Association has implemented more than 200 international scientific projects across fields such as medical biology, agriculture, information technology, new materials, and ecology. Its interest in cooperation with Azerbaijan underscores the growing recognition of Azerbaijan as a reliable scientific and educational partner in Eurasia.

Taken together, these developments indicate that Azerbaijan-China relations have moved beyond symbolic partnership into a multidimensional strategic alliance. Political trust has created the foundation, economic cooperation provides tangible benefits, transport connectivity strengthens Azerbaijan’s geopolitical relevance, and scientific collaboration ensures long-term institutional depth.

As global competition intensifies and new economic corridors take shape, Azerbaijan’s pragmatic and balanced engagement with China positions the country as a key regional partner – capable of aligning national interests with broader Eurasian integration processes. In this sense, Azerbaijan-China relations are not only deepening but are becoming an integral part of Azerbaijan’s broader vision for sustainable growth and strategic autonomy.

37 migrants rescued from overturned boat off Dikili coast in Turkiye

Turkish authorities rescued 37 migrants from a rubber boat off the Bademli coast in Dikili, Izmir, during a search-and-rescue operation, Interior Minister Ali Yerlikaya reported on X.

As reported by Azernews, according to the minister, as soon as authorities received information about the migrant boat, patrol vessels TCSG-61 and TCSG-907 were dispatched to the area.

Despite adverse weather conditions, the semi-submerged boat was located, and 37 migrants were saved alive. Unfortunately, the body of one migrant was recovered.

The total number of migrants on board was 45, and search-and-rescue operations continue for the seven remaining missing individuals. A TCSG-502 Coast Guard helicopter was also deployed to assist in the operation.

Azerbaijan’s power sector enters green expansion phase [ANALYSIS]

At a time when global energy markets are under increasing pressure from geopolitical tensions, climate commitments, and growing demand, Azerbaijan’s energy strategy stands out for its balance between reliability and transformation. While remaining a key supplier of traditional energy resources to international markets, the country is simultaneously accelerating its transition toward renewable energy, positioning ‘green energy’ as both an economic driver and a pillar of long-term energy security.

This dual-track approach aligns with Azerbaijan’s broader socio-economic development strategy, its post-conflict reconstruction agenda, and its ambition to strengthen regional stability through sustainable infrastructure. In this context, the power sector has evolved from being merely a domestic utility backbone into a strategic instrument supporting green growth, export diversification, and investor confidence.

With the commissioning of new generation facilities, Azerbaijan’s total installed electricity capacity has reached 9,732.5 MW, marking an increase of 1,317 MW, or 15.6 percent, compared to 2024. This expansion is not only quantitative but structural, reflecting a shift toward cleaner and more diversified sources of energy.

According to 2025 data, Azerbaijan’s power system comprises:

24 thermal power plants (7,903 MW),

65 hydroelectric power plants (1,443.5 MW),

9 solar power plants (278.2 MW),

5 wind power plants (63.5 MW),

1 solid waste power plant (37 MW),

3 hybrid power plants (7.3 MW).

Renewable energy capacity, including hydropower, totals 1,829.6 MW, accounting for 18.8 percent of overall generation capacity. Importantly, parallel investments in grid infrastructure have increased transmission capacity to 29,714 MVA, ensuring system stability and integration of intermittent renewable sources. This growing capacity has already translated into tangible outcomes. In 2024, Azerbaijan produced 28.4 billion kWh of electricity, meeting domestic demand while exporting 1.4 billion kWh. In the first nine months of 2025 alone, exports approached 1 billion kWh, underlining Azerbaijan’s emerging role as a regional electricity supplier.

A symbolic and practical milestone in Azerbaijan’s green energy transition was marked on January 8 with the official opening of the 240 MW Khizi-Absheron Wind Power Plant, implemented by Saudi Arabia’s ACWA Power. This project represents the first renewable power facility built by ACWA Power in Azerbaijan and signals the deepening of strategic energy cooperation between Azerbaijan and leading global investors.

Speaking at the opening ceremony, President Ilham Aliyev described the project as ‘a very significant event’ that strengthens Azerbaijan’s energy capacity and reflects the country’s openness to international partnerships in renewables. The President emphasized that this project is not an endpoint but part of a broader pipeline, noting that ACWA Power has ‘bigger plans’ in Azerbaijan, including participation in the country’s first Caspian Sea desalination project.

The involvement of PowerChina as the general contractor further illustrates Azerbaijan’s ability to attract major global players across different segments of the energy value chain, such as construction, investment, and technology transfer. A key analytical takeaway from the President’s speech is Azerbaijan’s insistence on the parallel development of traditional and renewable generation capacities. As President Aliyev underlined, energy security can only be ensured by maintaining a reliable baseload through thermal generation while expanding renewable capacity.

The commissioning of a 2,000 MW traditional power plant in Mingachevir alongside new solar and wind facilities demonstrates this balanced model. This approach has enabled Azerbaijan to maintain energy self-sufficiency, avoid supply shocks, and create the flexibility needed to integrate variable renewable sources without compromising system reliability.

Renewable energy development is also closely linked to Azerbaijan’s post-conflict reconstruction policy. In the liberated territories of Garabagh and East Zangezur, three solar power plants with a combined capacity of 340 MW are under construction in Jabrayil, while around 40 small hydroelectric power plants with a total capacity exceeding 300 MW have already been built using public funds.

Plans indicate that small hydropower capacity in these regions alone could reach 500-600 MW, transforming them into green energy hubs and supporting sustainable resettlement, industrial activity, and infrastructure development.

One of the most strategic dimensions of Azerbaijan’s green agenda lies offshore. According to international estimates cited by President Aliyev, the wind energy potential of Azerbaijan’s sector of the Caspian Sea is around 157 GW – a figure that places the country among the most promising offshore wind markets globally.

Based on signed contracts, Azerbaijan plans to commission:

6 GW of wind and solar capacity by 2030, and

8 GW by 2032, excluding additional hydropower.

Such volumes would not only meet rising domestic demand but also significantly expand electricity exports, reinforcing Azerbaijan’s position as a regional energy hub.

A central message of the President’s speech was Azerbaijan’s investment credibility. The country has attracted over $300 billion in foreign investment, underpinned by political stability, a strong macroeconomic position, and a consistent contractual framework. With foreign debt slightly above 6 percent of GDP and foreign exchange reserves exceeding external debt by 16-17 times, Azerbaijan ranks among the world’s most financially resilient economies. Recent upgrades by international rating agencies to investment-grade status with a positive outlook further strengthen its appeal to long-term investors.

President Aliyev’s explicit assurance that contracts are inviolable – ‘our word is as valuable and legal as our signature’ – addresses one of the most critical concerns for foreign investors, particularly in capital-intensive sectors such as renewable energy.

Looking ahead, Azerbaijan is also addressing the next structural challenge of renewable integration: energy storage. The country is launching its first 250 MW Battery Energy Storage System, implemented by AzerEnerji, and has invited foreign investors to participate in future projects.

At the same time, Azerbaijan is positioning itself to attract energy-intensive industries of the future, including data centers and artificial intelligence infrastructure, leveraging its growing clean energy base. Azerbaijan’s green energy policy is no longer a complementary agenda; it is becoming a central pillar of national development, regional cooperation, and investment strategy. By combining traditional energy strength with rapid renewable expansion, ensuring financial stability, and maintaining contractual reliability, Azerbaijan is redefining its role from a resource supplier to a strategic energy partner. As global energy security concerns intensify, Azerbaijan’s model – grounded in balance, diversification, and investor trust – offers a compelling case study for energy-producing countries navigating the transition to a low-carbon future.

Armenia discloses expected imports of Azerbaijani oil products

Armenia expects to import 7,600 tons of oil products from Azerbaijan, according to a statement by Armenian Economy Minister Gevork Papoyan.

Azernews reports that Papoyan shared the information on his social media account, providing details on ongoing and planned deliveries via Azerbaijan’s territory.

‘As of January 8, 2026, 8,485 tons of Russian grain have already arrived in Armenia by rail from the territory of Azerbaijan. A further 4,103 tons of grain, as well as 7,600 tons of Azerbaijani oil products – 6,100 tons of gasoline and 1,500 tons of diesel fuel – are on the way,’ the minister wrote.

Papoyan recalled that in 2025, Armenia imported 6,580 tons of grain by rail through Azerbaijan, including 1,000 tons of Kazakh-origin grain and 5,580 tons of Russian grain. In addition, 1,210 tons of Azerbaijani gasoline were delivered during the same period.

The minister also linked the new shipments to expected changes in the domestic fuel market.

‘As I have already noted, gasoline and diesel fuel prices are expected to decrease by 80 drams (0.36 manat – ed.) per liter compared to the prices of the previous month. I am pleased to announce that in connection with this development, other companies engaged in the sale of petroleum products are also working on reducing prices,’ Papoyan stated.

The expected imports mark a continued use of Azerbaijani transit routes and energy supplies in Armenia’s trade and fuel market dynamics.

Military Prosecutor holds meeting with Air Force personnel [PHOTOS]

Military Prosecutor Bahruz Ahmadov held a meeting with the Commander of the Air Forces of the Ministry of Defense, Lieutenant General Namig Islamzadeh, and a group of military personnel.

Azernews reports, citing the Military Prosecutor’s Office, that during the event, Ahmadov spoke about the high level of professionalism demonstrated by the Air Forces during the 44-day Patriotic War, underlining their crucial role both during the conflict and in the current period.

He stressed that alongside physical preparedness, it is essential for servicemen to continuously improve their theoretical knowledge, master modern technologies, apply them professionally, and maintain strict discipline in order to achieve sustained success.

During the meeting, military personnel expressed their satisfaction with the conditions created by President and Supreme Commander-in-Chief Ilham Aliyev, noting their readiness to successfully fulfil the tasks assigned to them in the future.

The event concluded with the presentation of gifts to servicemen who distinguished themselves in service, along with wishes for continued success in their professional activities.

AZAL suspends Tehran flights amid unrest in Iran

Amid large-scale protests in Iran, Azerbaijan Airlines (AZAL) has canceled the flight scheduled for today on the Baku-Tehran-Baku route, Azernews reports.

AZAL said that additional information will be provided regarding the resumption of flights on this route, noting that passengers will be promptly notified as soon as updates become available.

It was also reported that Turkish Airlines has canceled 17 flights scheduled to Tehran, Mashhad, and Tabriz, citing the same situation.

AZAL apologizes for the inconvenience and appreciates the understanding and patience of its passengers.

It is important to note that the safety of flights and passengers is AZAL’s top priority.

Azerbaijan ships AI-95 gasoline and diesel to Armenia by rail

The next batch of oil products has been delivered from Azerbaijan to Armenia.

Azernews reports that a total of 2,698 tons of oil products, transported in 48 railway wagons, were dispatched today from the Bilajari station to Armenia. The shipment includes 1,742 tons of AI-95 gasoline and 956 tons of diesel fuel.

According to the information, the wagons loaded with oil products will transit through the territory of Azerbaijan to Georgia and from there continue onward to Armenia.

It was recalled that on December 18, the State Oil Company of the Republic of Azerbaijan (SOCAR) delivered the first locally sourced oil cargo to Armenia. At that time, 1,220 tons of AI-95 automotive fuel, loaded into 22 tank wagons, were sent by a freight train of Azerbaijan Railways (ADY) from the Baku Freight Station to the Boyuk Kesik station.

Both nations have made efforts to move beyond enmity and heal the wounds inflicted by the war since 2025. Many believe that the tank cars carrying Azerbaijani oil to Armenia represent one of the attempts at building trust between the two nations. It should be noted that this was the second batch of oil Azerbaijan exported within a month.

The first batch of Azerbaijani oil was exported on December 18, 2025. At that time, the Garabagh clique, the main beneficiaries of the long-standing conflict, tried to create a storm in a teacup, circulating reports that ordinary Armenian citizens opposed trade with Azerbaijan, in an effort to throw the Pashinyan government under the bus. Yet the reality proved otherwise: the imported oil was fully consumed within 20 days, and Armenia exported oil again.

Armenia’s Minister of Economy, Gevork Papoyan, confirmed the robust demand for Azerbaijani oil. ‘The imported gasoline sold out within days, which shows how high the demand is,’ he told local media. In a later Facebook post, Papoyan highlighted that, alongside Azerbaijani oil, Kazakh and Russian grain had also entered Armenia through Azerbaijani territory. He emphasised that these developments could drive diesel prices down across the country. Moreover, Azerbaijani flights now traverse Armenian airspace, cutting both travel time and expenses for passengers, a small but significant sign of growing connectivity between the two nations.

Baku to host Ümid 2026 Arts Competition

Ümid 2026 Arts Competition will take place at the Rashid Behbudov State Song Theater on January 10-11, Azernews reports.

The event is organized by the Azerbaijan Youth Union and the Azerbaijan Dance Association.

As part of the competition, participants will present performances in various fields of art. The program includes pop and classical vocals, folk and classical musical instruments, modern and classical dance, visual arts, artistic recitation, folklore, and other disciplines. All performances will be evaluated by a professional jury.

“This competition is aimed at sparking interest among children and young people in various forms of art, developing their creative abilities, and discovering and supporting new talents. We are pleased to support children and youth on this path,” said Aziz Azizov, President of the Azerbaijan Dance Association.

Participants who particularly distinguish themselves in the competition will be awarded the Grand Prix and diplomas.

Media partners of the event are Azernews.Az, Trend.Az, Day.Az and Milli.Az.

First mugham evening of year celebrates female performers [PHOTOS]

The International Mugham Center has hosted its first mugham evening of the year, with a special focus on female interpretations of Azerbaijan’s traditional mugham music, Azernews reports.

The concert opened with a piece by composer Jahangir Jahangirov from the film “Koroglu”, performed by the ensemble. The evening continued with solo performances from the Mugham Center’s talented artists.

Sevinj Sariyeva, an honored artist, Nisbat Sadrayeva, a soloist at the Mugham Center, and Gulnar Gudratli, the winner of the Mugham Television Contest, totally captivated the audience with their impressive skill and delicate interpretations of mugham traditions. Their performances were met with thunderous applause from the audience.

Also featured in the concert were soloists of the Mugham Center, Elgiz Aliyev, Mirpasha Shukurov, Grand Prix winner of the 4th Mugham Television Contest, and Yusif Jafarbayli, laureate of the 9th Mugham Television Contest.

The performers were accompanied by an exceptional group of musicians: Rustam Muslimov on tar, Araz Aghaverdiyev on kamancha, Mehta Mammadalizade on qanun, Rafael Asgarov on balaban, Siyavush Kerimov on nagara, and Saday Badalov on gosha naghara.

The Mugham Center was established on the initiative of the First Vice-President of Azerbaijan and President of the Heydar Aliyev Foundation, Mehriban Aliyeva, in accordance with the presidential decree dated April 6, 2005.

The center, which laid its foundation that same year and is known as one of Baku’s unique architectural projects, opened its doors in 2008.

The Mugham Center regularly organises large-scale music festivals and concerts by highly acclaimed cultural figures.

The Center also takes important steps towards bolstering cultural ties with Turkiye, Poland, Brazil, Uzbekistan, Morocco, and other countries.

The International Mugham Center is determined to further expand its work and promote Azerbaijani musical culture.

Numerous projects are being carried out by the center in the direction of studying and promoting mugham art.

In 2025, the Mugham Center became the first cultural institution in Azerbaijan to be awarded “international” status by legislation.

This new status contributes to improving the financial well-being of the people working at the center, which has been one of the leading concert institutions in Baku for many years.

The International Mugham Center has seen a noticeable rise in interest last year, particularly from tourists attending mugham and ethnoconcerts.

during the 9th “Mugham” TV Contest, the center hosted numerous concerts, attracting a diverse range of visitors.

Monthly events cater to both music specialists and casual attendees, with advertising banners placed outside to draw in more tourists. During the day, as tourists pass by in anticipation of the evening performances, many stop to admire the center’s striking architecture and inviting atmosphere.

This growing international interest was particularly evident during the Formula 1 Azerbaijan Grand Prix, when many race fans and visitors to Baku also attended IMC’s musical events.