Azerbaijan is becoming a green energy hub in the region

As in many parts of the world, the use of environmentally friendly “green” energy sources is increasing in Azerbaijan. Azerbaijan’s significant potential for renewable energy sources enables the implementation of large-scale projects in this sector. In particular, the rich renewable energy potential of the Karabakh, East Zangezur, and Nakhchivan economic regions creates significant opportunities for these areas to become “green energy zones”. The Azerbaijani government is taking steps to develop renewable energy sources, as well as assess and harness the potential for electricity production from these sources. The favorable environment created for investors in the country, along with the implemented concession mechanisms, customs, and tax exemptions, is aimed at fostering the development of the renewable energy sector. It is worth noting that in the document “Azerbaijan 2030: National Priorities for Socio-Economic Development”, one of the five priorities is declared as “a country of clean environment and green growth”. Traditionally known as a global exporter of conventional energy resources, using renewable energy sources has become a key focus in Azerbaijan. One of the main objectives of ongoing energy sector reforms is to increase the share of electricity generated from “green” energy sources in the county’s energy mix. This article provides detailed insights into the development of Azerbaijan’s “green” energy industry. It offers a general overview of the country’s renewable energy potential and the finalized projects, while also exploring future prospects. Since the beginning of the new era of “green” energy in 2020, Azerbaijan has attracted leading global energy companies and organizations to develop renewable energy projects. By expressing its support for the joint initiative “Global Pledge on Renewable Energy and Energy Efficiency” at the COP28 Conference, which aims to triple the world’s renewable energy capacity and double energy efficiency by 2030, Azerbaijan aims to implement large-scale projects through private investment. It is no coincidence that electricity production from green energy sources nearly doubled in 2024, and the share of renewable energy in total electricity production was approximately 14 % last year.