WSHPDR_2013_Final_Report-updated_version

3.5.2 Azerbaijan
Ugranath Chakarvarty, International Center on Small
Hydro Power
Key fact
Population 9,493,600 1
Area 86,660 km 2
Climate Dry, semiarid steppe
Topography Large, flat Kur-Araz Ovaligi (Kura-Araks
Lowland, much of it below sea level)
with Great Caucasus Mountains to the
north, Qarabag Yaylasi (Karabakh
Upland) in west; Baku lies on Abseron
Yasaqligi (Apsheron Peninsula) that cuts
into Caspian Sea.
Rain
pattern
Varied, the maximum annual
precipitation occurs in Lankaran
(1,600-1,800 mm) and the minimum in
Absheron (200-350 mm).
Electricity sector overview
Azerbaijan’s energy sector follows the management
system similar to that of the Soviet period, wherein
the enormous task of production, transmission and
sale of electricity remained as a state monopoly. The
electric power system in Azerbaijan is undoubtedly old
and yet powerful in the southern Caucasus region.
Azerbaijan is self-sufficient in electricity in terms of
installed capacity but remains energy-inefficient.
Annual generation is less than expected; the
overloaded transmission/distribution system leads to
acute peak energy shortages. Azerenerji, a stateowned
Joint Stock Company is the major electricity
producer and it controls the transmission and
distribution network of the country, with a few
exceptions. The national electricity network is divided
into five regional grids: Baku, Nakhichevan, Sumgait,
Ali Bayramly and Ganja, which are currently open to
foreign investors.
The total installed capacity in 2011 was 6,808 MW, of
which 5,003 MW constituted of fossil fuels and the
remaining 1,805 MW of hydropower. 2 It should be
noted that different sources report varying electricity
capacity and generation data (figure 1). Most of the
hydropower is generated from six large hydropower
stations constructed during the Soviet time.
Hydro
Thermal
12.37%
87.63%
0% 20% 40% 60% 80% 100%
Figure 1 Electricity generation in Azerbaijan
Source: ABC.az 3
Note: Data from 2009.
Small hydropower sector overview and potential
Small hydropower plants are those ‘that have a power
of 50-10,000 kW, are installed over a regular water
flow, and are able to immediately return water to its
flow’, according to Sub-section C, Section 1 of Article 3
of the Law on Power and Thermal Plants (Order No.
784-IQ). 4
SHP installed
capacity
SHP potential
42 MW
392 MW
0 100 200 300 400 500
Figure 2 Small hydropower capacities in Azerbaijan
The small hydropower share in the country is
relatively small, particularly due to Azerbaijan’s focus
on a centralized large electricity system in the past.
Some operational small hydropower plants: Sheki,
Mughan, Zeykhur, Gusar, Nyugedi, Chinarly, Balakan,
Guba and Zurnabad were offered for privatization
under the Presidential Decree in 2001 (table 1). The
State Property Committee of Azerbaijan views an
average rehabilitation expenditure of AZN 20,000 to
AZN 30,000 (US$25,600 to US$38,400); hence it wants
to privatize the small hydropower units as soon as
possible. As of July 2007, six small hydropower
stations remained non-privatized.
In total, 42 MW of small hydropower plants are
operational (figure 2). The table below shows selected
small hydropower plants.
Installed small hydropower in Azerbaijan
Name
River
Location
Region
Capacity
(MW)
Year of
commissioning
Sheki Kischay Sheki 1.6 1929
Mughan Araz Mughan 3.8 1962
Zeykhur Samur Gusar 9.0 1964
Gusar Samur Gusar 1.2 1953
Nyugedi Gara Guba 0.8 ---
Chinarly Shamkirchay Shamkir 0.8 1957
Balakan Balakanchay Balakan 0.8 1954
Guba Kudialchay Guba 1.2 1936
Zurnabad Ganja Khanlar 2.7 1929
Takhta Siyazan Siyazan 2.8 ---
Korpu
Chichekli Gyandjachai Khanlar 3.0 ---
Total capacity 27.7
Source: United Nations Development Programme 5
Note: All plants listed are operational. This list may
incomprehensive.
Hydropower resource in Azerbaijan is located
alongside rivers such as Kura and its tributaries, Araz,
small streams terminating at Caspian Sea and
irrigation canals. According to Azerenergi, the country
is endowed with a theoretical small hydropower
be
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