As Europe's energy transition accelerates and demand in the Central Asian market surges, Chinese photovoltaic companies are moving their production lines to the shores of the Caspian Sea. Sichuan Heguang Tongcheng Photovoltaic Technology Co., Ltd. will launch the construction of Azerbaijan's first large-scale solar panel production base within a few weeks. The project is located in the Alat Free Economic Zone south of the capital Baku, and it is also the first new energy industry project to land under the comprehensive strategic partnership between China and Azerbaijan.

Zero tax policy provides full protection

The initial plan for the project is to produce 3GW of solar panels annually, covering an area of 23 hectares. In the future, it will gradually expand to 10GW and simultaneously produce silicon crystals and modules. In September 2025, the two sides officially signed an investment agreement in Chengdu, and the Deputy Prime Minister of Azerbaijan led a delegation to attend.

Azerbaijani President Ilham Aliyev had already met with the company founder during his previous visit to China, which shows the high level of attention from the top management. The Alat Free Economic Zone provides preferential policies such as zero tax and no foreign shareholding restrictions for projects, and has signed approximately $119 million in engineering contracts, which will directly drive local employment. The factory will also participate in the construction and bidding of solar power plants in Azerbaijan, and in the future, the factory area will expand to localized production of wind turbine blades, towers, and energy storage systems, forming a more complete new energy industry chain.

Green Silk Road adds new benchmark

Azerbaijan plans to increase the proportion of renewable energy installed capacity to 30% by 2030 and invest 2.7 billion US dollars in the construction of ten solar and wind power plants in the next two years. This project is highly export-oriented and serves the global market.

With the advantageous location of the Alat Free Economic Zone adjacent to Baku New Port and the Trans Caspian International Transport Corridor, the base is expected to become a regional green manufacturing hub that radiates the Eurasian market, and form synergy with projects such as the 445MW Bilyasuwar Photovoltaic Power Station constructed by China Energy Engineering Corporation. For Sichuan and Guangtongcheng, this move has achieved a leap from product export to deep cultivation of the industrial chain, truly achieving mutual benefit and win-win results. Keywords: photovoltaic, new energy, photovoltaic industry

A green trade channel centered on photovoltaic manufacturing is taking shape from Baku to Europe, from the Caspian Sea to Central Asia. Chinese companies going global are shifting from selling products to building an ecosystem.Editor/Cheng Liting