Azernews.Az

Ulviyya Poladova

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Harmonizing electricity market regulations across Central Asia and the South Caucasus is essential for unlocking the full potential of regional renewable energy trade and strengthening energy cooperation with Europe, AzerNEWS reports, citing Rena Humbatova, Deputy Director of the Azerbaijan Renewable Energy Agency (AREA).

Speaking at the Baku Energy Forum, Humbatova noted that countries participating in regional energy initiatives need to develop compatible regulatory and market frameworks to facilitate efficient cross-border electricity exchanges.

"There is a need to harmonize electricity market rules," she said, referring to ongoing European integration efforts and the highly integrated electricity market framework established across Europe.

According to Humbatova, regulatory alignment among countries such as Azerbaijan, Georgia, Kazakhstan, and Uzbekistan would help create transparent trading conditions and reduce barriers to electricity exchanges. Such measures are becoming increasingly important as regional states seek to expand renewable energy generation and strengthen international energy connectivity.

She also highlighted the importance of coordinated grid planning and the development of cross-border transmission infrastructure. Humbatova stressed that regional renewable energy markets require joint planning efforts, the identification of common investment priorities, and the establishment of reliable operational standards.

"Participating countries should work toward reliable standards, regional dispatch and forecasting systems, as well as clear rules for the allocation of interconnection capacities," she said.

Humbatova emphasized the importance of internationally recognized certification schemes, including the International Renewable Energy Certificate (I-REC) system and similar certification mechanisms being developed across the region.

At the national level, Azerbaijan has already taken significant steps in this direction. Humbatova pointed out that in 2023 the Ministry of Energy established a system of certificates of origin for electricity generated from renewable energy sources.

The framework, she explained, provides a legal and institutional basis for tracking renewable electricity generation from producers to end consumers, improving transparency and supporting international recognition of green electricity exports.

"We try to provide domestic regulatory oversight and then join both regional and international renewable energy certification systems," Humbatova added.