In the early 1990s, the natural gas and electricity outage caused by Armenia created serious problems in power supply in the Nakhchivan Autonomous Republic. However, thanks to the active work of the then chairman of the Supreme Council of the Autonomous Republic, national leader Haydar Aliyev, and as a result of the negotiations with Turkey and the Islamic Republic of Iran some measures were taken to export electricity to the autonomous republic and the problem was partially overcome.
According to the agreement signed between the Republic of Azerbaijan and the Islamic Republic of Iran in 2004, since the end of 2005 the Autonomous Republic have been provided with the natural gas from Iran by exchange. At present, the entire territory of Nakhchivan is supplied with gas.
The natural gas transportation did not only reduce the demand for electric power, but also afforded great opportunities for meeting this demand by the domestic production.
The demand for electrical energy was continuously met through 22-megawatt Araz hydroelectric power station, 87-megawatt Nakhchivan Module power plant, 60-megawatt Nakhchivan Gas-Turbine power plant, 22-megawatt Bilev hydroelectric power station built on the H.Aliyev water reservoir.
In the framework of the energy security related measures, the construction of 20.5-megawatt Arpachay hydroelectric power station in Sharur district was completed in 2013.
The construction and equipping of 110/35/10 kV “Ordubad” electric power substation in Ordubad district, and the reconstruction of 35/10 kV “Khanliglar” electric power substation in Sharur district was completed.
Natural gas supply for consumers is of great importance in the Autonomous Republic. 81,162 people were provided with the natural gas and the construction of Nakhchivan-Sadarak high-pressure main gas pipeline of 81.6 kilometre length was completed in 2013.
As a result of the measures taken, the autonomous republic has changed from being an energy importer into the exporter role.
The construction of a 3-megawatt Solar Power Station has been completed in the Sharur region, and the construction of the Ordubad and Tivi Water Power Stations is ongoing in the Ordubad region in the direction of creating alternative energy production areas in the Autonomous Republic.
In addition, the construction of a 3-megawatt Solar Power Station in the Sharur region and a 0.3-megawatt wind power plant in the Julfa region is ongoing.
To further modernize the energy system, the construction of a 35/10 kilovolt electrical substation has been completed in Khanaga village of the Ordubad region, and the construction of a 132/110/35/10 kilovolt electrical substation is underway in the Julfa region.
New electric lines of 10 and 0.4 kilovolts, totaling 37.5 kilometers in length, have been installed, and 18 transformer substations with various voltage levels have been set up in the Autonomous Republic.
As of October 1, 2022, 88,915 residents in the Autonomous Republic have been supplied with natural gas. The installation of smart card-based electricity and gas meters continues in Nakhchivan city, and the installation of smart card-based electricity meters is ongoing in Sharur, Babek, and Julfa cities.
During the first 4 months of 2023, major and current repair works have been carried out in power stations, high-voltage power transmission lines, and various voltage transformer substations according to the schedule. Efforts have been made to improve the supply of electrical energy to consumers, and new transformer substations have been installed for the electricity supply of residential areas, schools, social facilities, military units, pump substations, and artesian wells. Additionally, various voltage power transmission lines have been installed, and existing overhead power transmission lines are being replaced with cable lines in Nakhchivan city and regional centers.
The establishment of solar and wind power stations is the main priority for meeting the needs of the Nakhchivan Autonomous Republic through alternative energy sources in the future. In total, the project capacity of solar power stations is 39 megawatts, while the project capacity of hydropower plants is 68.4 megawatts.
Within the framework of "Baku Energy Week," a special session on the topic "Green Energy Potential of Nakhchivan and Eastern Zangezur" was held in the Nakhchivan Autonomous Republic on June 3, 2023. During this session, the Ministry of Energy signed a memorandum of understanding with "Nobel Energy Management" for the construction of a 400 MW solar power plant and the export of the produced electricity to the Republic of Turkey, also agreements were reached with "TotalEnergies" company for the evaluation and implementation of energy storage systems projects, including 250 MW onshore wind power and 250 MW solar power stations in Nakhchivan Autonomous Republic. Partnership agreements were signed with "Total Energies" and "Nobel Energy Management" for joint projects on solar and wind energy with a total capacity of 900 MW. Of this capacity, 650 MW will be specifically generated in Nakhchivan, contributing to the production and consumption of "green energy" in both Nakhchivan and Eastern Zangezur, and transforming the region into a source of export as well.