What happened
YEO Teknoloji Enerji ve Endüstri has signed a US$58.6 million agreement with Azerenerji CJSC, Azerbaijan’s electricity network operator, for a 250 MWh battery energy storage installation. Enerji Günlüğü reported that the contract uses an EPC-F structure, under which YEO will undertake engineering, procurement, construction and financing.
The delivery scope covers engineering, supply, construction, installation and commissioning of the batteries, power conversion equipment, battery management system and energy management system. YEO is also responsible for a high-voltage substation and connecting the facility to the network.
REAP Battery, which is part of the YEO group, is due to produce the batteries. Project funding is expected to be provided through local banks, with repayment over four years.
What to watch: YEO says construction will begin soon and expects the complete installation to be commissioned within one year.
Why it matters
The arrangement combines technology delivery, network connection and funding within one contract. This gives YEO responsibility for more than battery supply: its remit extends to the substation, integration work and the financing component.
The project follows two storage installations in Azerbaijan with a combined 500 MWh capacity. YEO signed the contracts for those projects in 2025 and reports that they were commissioned in the second quarter of the current year.
The new agreement therefore represents a further 250 MWh project for the company in the country. It also sets out a defined local-bank financing route alongside the technical works, with a four-year repayment period stated in the announcement.
Project scope and delivery timetable
YEO’s announced scope includes the battery energy storage system and its associated control and conversion equipment, as well as the high-voltage substation required for network connection. REAP Battery is identified as the battery manufacturer.
The announcement does not provide a construction completion date before commissioning. Its stated timetable is an imminent start to building work followed by full system commissioning within a year.
Next steps
Stakeholders can monitor the start of construction, progress on the substation and network connection, and delivery against the one-year commissioning target. The local-bank funding arrangement and four-year repayment term are central elements of the EPC-F model described for the project.
