For decades, two aging transmission lines carried electricity from western Azerbaijan to the Absheron Peninsula, home to the country’s largest industrial and economic center, near Baku. Built more than 60 years ago, the lines served the nation well, but growing demand for reliable power placed increasing pressure on a network designed for a different era. 

With its expanding economy and rising reputation as a hub linking Asia and Europe, Azerbaijan needed a stronger and more efficient energy system. Dependable electricity was not simply about supplying light. Industries, households, and the country’s development ambitions required it, as well. 

To meet this challenge, the Asian Development Bank supported the $160 million Power Transmission Enhancement Project under the CAREC Program. Completed in 2014, the project modernized a critical section of the power network by constructing a double-circuit 220-kilovolt (kV) transmission line from the Mingechevir hydropower plant to the Absheron substation. It included a 220/110 kV substation and transmission infrastructure, while building the capacity of the national power utility, Azerenergy. 

The results were transformative. 

Power transmission capacity across the project area increased by 300 megawatts, while the distribution capacity of 220 kV substations expanded by 1,010 megavolt-amperes, surpassing original targets by more than half. Electricity could move more efficiently from west to east, meeting the growing needs of consumers and industries in one of Azerbaijan’s most economically important regions. 

The impact extended beyond infrastructure. Each year, the amount of electricity produced and distributed to the power grid went up by 23%, which boosted economic activities and made the energy system more secure. Electricity breakdowns stopped completely, ensuring uninterrupted water and power supply. 

The project greatly improved the environment. More effective use of energy reserves was a factor that brought down carbon dioxide emissions by about 600,000 tons annually. Better system operations have increased Azerbaijan’s presence in the international energy market, with net exports of electricity reaching 365.2 gigawatt-hours every year. 

Since joining the CAREC Program in 2003, Azerbaijan has worked closely with regional partners to strengthen connectivity and unlock opportunities for growth. Transport corridors connecting Asia and Europe have received much attention, but the upgrading of the energy sector has been vital, as well. The Power Transmission Enhancement Project illustrates how the right investments can support industrial growth, improve the environment, and create a solid foundation for long-term prosperity. 

Today, the transmission line stretching from Mingechevir to Absheron does more than carry electricity. It powers Azerbaijan’s continued growth and its vision of a more connected future.