Azerbaijan Renewable Energy Potential and Market Development


/14th June 2019, by Renewable Market Watch™/


The Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. It is located at the crossroads of Western Asia and Eastern Europe and bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to the south. The country occupies an area of 86,600 km2 and has the population of 8.7 million people in 2018. Azerbaijan power system is the oldest and most developed in southern Caucasus region.

There is a great potential for renewable energy development (solar, wind, geothermal and biomass) in Azerbaijan due to its geographical location, climate and economic infrastructure, according to the Commonwealth of Independent States (CIS) Renewable Power Market Outlook 2019 – 2028.

Representing less than 2 % of total energy supply in 2018, renewable energy will require additional investment to become competitive with the country’s huge fossil resources. The reduction of energy consumption for heating and cooling, which represents more than 50% of total domestic consumption, is another major challenge that could be resolved partially by the introduction of efficient technology.

In order to pave the way for renewable energy sector development in Azerbaijan, the Asian Development Bank (ADB) is contributing to fixing the old electricity transmission system by rehabilitating existing lines and building new ones. Over the past several years renewable energy sources (other than hydropower) got in the picture and a few studies have been performed with a strong focused on infrastructure.

Production from renewable energy sources has been opened to independent producers (wind and solar), however, its share is less than 1% of total generation. At the end of 2018 there is a small number of variable renewable energy facilities in operation consisting of 6 solar photovoltaic (PV) plants and 4 wind farms.

The more information about the Azerbaijan renewable power market, you may receive with a 1-year subscription for Commonwealth of Independent States (CIS) Renewable Power Market Outlook 2019 - 2028. Furthermore, you will receive up to 4 quarterly updates.

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