QAZAQ GREEN. The Government of Azerbaijan has established a minimum investment threshold of 30 million manats for electricity generation projects based on renewable energy sources (RES) that are subject to state purchase obligations. The corresponding decree was signed by Prime Minister Ali Asadov, Trend reports.

This regulatory measure supports Azerbaijan’s broader strategy to increase the share of renewables in its national energy mix to 30% by 2030. According to the Ministry of Energy, the technical potential of Azerbaijan's renewable energy resources is estimated at 135 GW onshore and 157 GW offshore. The economic potential stands at around 27 GW, including:

·        3,000 MW of wind energy

·        23,000 MW of solar energy

·        380 MW of bioenergy

·        520 MW from mountain rivers

In 2023, Azerbaijan commissioned the 230 MW Garadagh Solar Power Plant, the largest in the Caspian region and among CIS countries. Developed in cooperation with Masdar and financed through $262 million in foreign investment, it is the country’s first utility-scale solar power facility built with international capital. The plant is expected to generate 500 million kWh annually, offsetting the consumption of 110 million cubic meters of natural gas.

Azerbaijan is also working with ACWA Power to construct the 240 MW Khizi-Absheron Wind Power Plant. In addition, agreements were signed with the same company to develop:

·        an offshore wind farm with a capacity of up to 1.5 GW

·        a 1 GW onshore wind project

·        a Memorandum of Understanding on the development of energy storage systems in the country

Further green energy projects are being developed in Nakhchivan, where Nobel Energy Management, TotalEnergies, and A-Z Czech Engineering have signed contracts for more than 1,000 MW of new capacity.

In line with efforts to transform the liberated territories into a green energy zone, President Ilham Aliyev signed a decree to promote sustainable development in these areas. Cooperation has already begun with Japanese firm TEPSCO, which contributed to the development of a conceptual plan. The regions of Gubadli, Zangilan, Jabrail, and Fizuli offer favorable conditions for solar energy, with technical potential exceeding 7,200 MW. Meanwhile, the Lachin and Kalbajar districts have identified 2,000 MW of wind potential. There is also considerable hydropower potential along the Terterchay, Khakarichay, and their tributaries.

Developing energy infrastructure and ensuring energy security are viewed as key pillars of the reconstruction and revitalization process in these territories. Four small hydroelectric power plants with a combined capacity of 20.2 MW have already been commissioned in Lachin, Kalbajar, and Sugovushan.

Experts predict that by 2030, Azerbaijan’s electricity production will significantly exceed domestic demand, creating opportunities for export.