After liberating its historical lands from Armenian occupation,
Azerbaijan began to implement a large-scale "First State Program on
the Great Return". Within the framework of the program, the
Government of Azerbaijan is working to restore the key energy
infrastructure necessary for successful economic development in
Along with traditional energy resources, Azerbaijan also pays
great attention to the development of renewable energy sources. The
Government aims to achieve a 30 percent share of renewable energy
in the country’s total energy mix by 2030.
Thus, from 2023 through 2025, the Ministry of Energy of
Azerbaijan will study and assess the prospects for the use of
renewable energy, namely (hydropower, geothermal energy and
bioenergy), as well as hydrogen technologies, energy and
Among the largest projects is the construction of a 240 MW solar
power plant in the Zangilan-Jabrayil zone together with BP. Another
project, which is going to be implemented through private
investments, is a wind power plant with a total capacity of about
400 MW in the Lachin or Kelbajar districts.
Meanwhile, the Ministry of Economy of Azerbaijan will be engaged
in the attraction of private investments in reconstruction works
and the construction of new hydropower plants. At the same time,
"Azerenergy" JSC will be working on the restoration of
decommissioned small hydroelectric power stations and, in total,
will provide 23 small hydroelectric power stations by 2025. Thus,
"Azerenergy" plans to build 28 new small hydropower stations from
2022 to 2025, while bringing the number of small hydropower
stations to 37 by 2026. Also, the construction of the "Khudafarin"
hydroelectric power station with a capacity of 100 MW and the "Gyz
Galasi" hydroelectric power station with a capacity of 40 MW will
be completed by 2025.
Also, the Ministry of Energy will implement pilot projects on
green technologies in 2022-2023.
As Pier Paolo Raimondi, Research Fellow of the Energy, Climate
and Resources Program at The Istituto Affari Internazionali,
Italian international relations think tank, told Trend, Azerbaijan has a high potential in
renewables development in terms of their diversification.
"Azerbaijan's renewable potential is quite high, yet largely
untapped. Furthermore, the country has a good potential in terms of
numerous renewable sources (sun, wind, hydro, biomass and
geothermal). Now, the country will need to dedicate financial
resources and a regulatory framework that will encourage the
development of such potential," he said.
According to Raimondi, the establishment of such renewable
energy hub in the South Caucasus, which Azerbaijan plans to create,
may acquire high political significance. This could be a
strategically important direction for international investment, as
some European institutions are already considering.
The expert noted Raimondi noted the potential development of
green hydrogen production in Azerbaijan with further export to
Europe, which will contribute to strengthening the partnership
between the EU and Azerbaijan.
"While electricity trade may contribute to strengthening the
partnership between EU and Azerbaijan, long-distance electricity
trade is quite challenging from the efficiency perspective.
Instead, Azerbaijan could prefer to produce clean hydrogen and then
export it to Europe through existing pipelines, after small
technical and infrastructural adjustments,” he explained.
Having liberated its historical lands, Azerbaijan is carrying
out enormous efforts to reintegrate these territories and to create
new economic opportunities not only for itself but also for the
countries of the wider region. European countries have repeatedly
expressed their interest in renewable energy projects in
Azerbaijan, which is also reflected in the recently signed
Memorandum of Understanding between the EU and Azerbaijan. Thus,
Azerbaijan’s potential in renewables could play a major role in the
diversification of energy resources in Europe and in achieving its
targets for reducing hydrocarbon emissions. By attracting large
foreign investments in renewable energy projects, Azerbaijan will
significantly strengthen the country’s economic potential, as well
as ensure the energy security of its partners.
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