Azerbaijan Encouraging Clean Energy Projects to Reduce Carbon Emissions

Azerbaijan, one of the biggest oil and gas producers among Central Asian nations and which will be hosting COP29, the UN Climate Change talks, in November this year, has been moving away from the fossil fuels by improving its green credentials by taking up several clean energy projects in the wind and solar sector.

Besides solar and wind power, the country has renewable energy development potential with significant resources in biomass, geothermal and hydropower sector.

According to the Azerbaijan’s Ministry of Energy, the technical potential of the country’s onshore renewable energy sources is 135 GW and offshore is 157 GW. The economic potential of renewable energy sources is estimated at 27 GW, including 3 000 MW of wind energy, 23,000 MW of solar energy, 380 MW of bioenergy potential, 520 MW of mountain rivers.

Keeping pace with other countries to reduce carbon emissions, Azerbaijan has also pledged to reduce the greenhouse gas emissions by 35% in 2030 and 40% by 2040 and has been awarding major contracts to build wind and solar power projects and the nation’s Parliament approved a law on encouraging renewable energy sector in May 2021.

Since 2020, cooperation on renewable energy projects has begun with the UAE’s Masdar, Saudi Arabia’s ACWA Power, bp, Fortescue Future Industries, China Gezhouba Group Overseas Investment, TotalEnergies, Nobel Energy, A-Z Czech Engineering and Baltech.

Increasing Share of Renewables

The country aims to realise close to 2GW of new renewable capacity by 2027, increasing the share of renewables in its installed capacity to a third through the likes of the development of wind farms in the Caspian Sea.

According to the ‘Detailed Action Plan for 2023-2024,’ of the State Program on Socio-Economic Development of the Nakhchivan Autonomous Republic for 2023-2027, it is planned to create a Green Energy Zone, develop a concept and Action Plan.

Contracts on implementation of renewable energy projects in Nakhchivan with Nobel Energy Management, TotalEnergies and A-Z Czech Engineering on green energy projects with a total capacity of more than 1000 MW were signed.

Besides these initiatives, Azerbaijan is constructing an electric cable to Europe and the government modernising the grid, which allows for the offering of investment incentives and the implementation of energy efficiency programmes.

The growing commitment of Azerbaijan to renewable energy cannot be questioned as it is actively investing in sustainable energy projects while continuing to leverage its substantial fossil fuel resources to maintain economic stability and fulfil international energy demands.

Azerbaijani President Ilham Aliyev said his country is committed to the green energy transition, but believes the world cannot wholly abandon fossil fuels in the near future.

“Azerbaijan, as I said, is in the active phase of green transition, but at the same time, no one can ignore the fact that without fossil fuel, the world cannot develop, at least in the foreseeable future,” he said a few days ago.