AzerEnerji, YEO sign $58.6 million battery storage deal

AzerEnerji OJSC and Türkiye's YEO Teknoloji Enerji ve Endüstri A.Ş. have signed an agreement to develop a 250 MWh Battery Energy Storage System.

According to Report, citing Turkish media, the turnkey contract, structured under an EPC-F model covering engineering, procurement, construction and financing, is valued at $58.6 million.

The project will be financed by local banks with a four-year repayment period.

Under the project, engineering, procurement, construction, installation and commissioning works will be carried out for the battery system, Power Conversion System (PCS), Battery Management System (BMS) and Energy Management System (EMS).

The Turkish company will also build a high-voltage energy center and complete integration of the system into the power grid.

Construction is expected to begin shortly, with the entire system scheduled to become operational within one year.

The batteries to be used in the project will be produced by REAP Battery, which is part of the Turkish company's group structure.

YEO previously commissioned two energy storage systems in Azerbaijan with a combined capacity of 500 MWh in the second quarter of this year. Contracts for those projects were signed in 2025.

The company said the new project would follow those systems and contribute to further strengthening Azerbaijan's regional position in the energy storage sector.