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Nazrin Abdul

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More than 300 small and medium-sized enterprises (SMEs) are currently operating in the electricity production and supply sectors of Azerbaijan, employing nearly 14,000 people. According to 2023 data, their total output reached about 900 million manats, Azernews reports.

Orkhan Mammadov, Chairman of the Small and Medium Business Development Agency of Azerbaijan (SMBDA), shared these figures during his speech at the 13th International Caspian Energy Forum in Baku.

Mammadov emphasized that countries around the world are rapidly prioritizing the transition to renewable and alternative energy sources.

“As traditional energy resources are gradually depleting and their environmental impact becomes more apparent, developed countries are increasingly turning to clean and sustainable alternatives,” he said. “In Azerbaijan, a new green energy strategy has taken shape. This strategy focuses on three main goals: reducing emissions, ensuring sustainable energy through inexhaustible resources, and increasing efficiency and export potential in the traditional energy sector.”

He underlined that the SME sector has strong potential to contribute to the implementation of Azerbaijan’s green energy strategy:

“SMEs can participate at various stages of the value chain — from green energy generation and logistics to the production of clean energy technologies,” Mammadov noted. “Ongoing improvements to the legal framework in the electricity sector, mechanisms supporting active consumers, and Azerbaijan’s ambition to become a green energy exporter create wide opportunities for SMEs to engage in small-scale renewable energy projects.”

He added that SMBDA continues to support entrepreneurs operating in the green energy field while also promoting energy efficiency within businesses.

Currently, SMEs make up 99.7% of all businesses in Azerbaijan, employing more than 400,000 people, Mammadov said. This, he noted, enables SMEs not only to increase their own use of clean and efficient energy, but also to promote such practices among employees.

“Joint awareness campaigns, new incentive mechanisms, and targeted projects can significantly contribute to achieving our green transition goals,” he added. “Our SME Development Centers across several regions and the ‘SME Friend’ network, active in over 50 districts and cities, play a vital role in this effort by directly engaging with entrepreneurs.”

Mammadov also highlighted ongoing cooperation with both public and private partners. Through the Public Council under SMBDA, discussions on public–private partnerships in green energy are being held.

In addition, a Memorandum of Understanding (MoU) was signed between SMBDA and ACWA Power Azerbaijan Renewable Energy LLC to support SMEs’ transition to a green economy, outlining joint initiatives and cooperation measures.

Orkhan Mammadov, Chairman of the Small and Medium Business Development Agency of Azerbaijan (SMBDA), shared these figures during his speech at the 13th International Caspian Energy Forum in Baku.

Mammadov emphasized that countries around the world are rapidly prioritizing the transition to renewable and alternative energy sources.

“As traditional energy resources are gradually depleting and their environmental impact becomes more apparent, developed countries are increasingly turning to clean and sustainable alternatives,” he said. “In Azerbaijan, a new green energy strategy has taken shape. This strategy focuses on three main goals: reducing emissions, ensuring sustainable energy through inexhaustible resources, and increasing efficiency and export potential in the traditional energy sector.”

He underlined that the SME sector has strong potential to contribute to the implementation of Azerbaijan’s green energy strategy:

“SMEs can participate at various stages of the value chain — from green energy generation and logistics to the production of clean energy technologies,” Mammadov noted. “Ongoing improvements to the legal framework in the electricity sector, mechanisms supporting active consumers, and Azerbaijan’s ambition to become a green energy exporter create wide opportunities for SMEs to engage in small-scale renewable energy projects.”

He added that SMBDA continues to support entrepreneurs operating in the green energy field while also promoting energy efficiency within businesses.

Currently, SMEs make up 99.7% of all businesses in Azerbaijan, employing more than 400,000 people, Mammadov said. This, he noted, enables SMEs not only to increase their own use of clean and efficient energy, but also to promote such practices among employees.

“Joint awareness campaigns, new incentive mechanisms, and targeted projects can significantly contribute to achieving our green transition goals,” he added. “Our SME Development Centers across several regions and the ‘SME Friend’ network, active in over 50 districts and cities, play a vital role in this effort by directly engaging with entrepreneurs.”

Mammadov also highlighted ongoing cooperation with both public and private partners. Through the Public Council under SMBDA, discussions on public–private partnerships in green energy are being held.

In addition, a Memorandum of Understanding (MoU) was signed between SMBDA and ACWA Power Azerbaijan Renewable Energy LLC to support SMEs’ transition to a green economy, outlining joint initiatives and cooperation measures.