From Fossil Fuels to Renewables: New Opportunities for Azerbaijan s Energy Security

This article examines the main barriers and opportunities related to renewable energy development in Azerbaijan, focusing on national energy security and business-sector growth. It identifies structural factors slowing renewable energy expansion and proposes policy measures to attract investment, improve infrastructure, and promote sustainable energy use. The study is based on semi-structured interviews, comparative analysis of international experience, and assessment of Azerbaijan’s legal and institutional framework. The findings indicate that limited investor participation remains a major constraint, as high initial costs reduce the capacity of small and medium-sized enterprises to adopt renewable technologies. Additional barriers include insufficient legislation, weak grid-balancing capacity, limited land availability, and inadequate energy storage systems. The study emphasizes the importance of Power Purchase Agreements, Feed-in Tariffs, Green Certificates, and fiscal incentives in creating a supportive market environment. It concludes that integrated regulatory reform, infrastructure modernization, financial support, and human capital development are essential for strengthening energy security, diversifying the economy, and generating new business opportunities.