AREA: Challenges persist in unlocking Azerbaijan's green energy potential

Azerbaijan continues to face challenges in realizing the economic potential of its renewable energy sources, Javid Abdullayev, Director of the Azerbaijan Renewable Energy Agency (AREA) under the Ministry of Energy, said during the 13th International Caspian Energy Forum 2025 held in Baku, Report informs.

Abdullayev explained that multiple factors affect the implementation of renewable energy projects: "First, there's the issue of potential-both technical and economic. Azerbaijan has substantial technical potential in this area. But the other issue is related to economic potential. It's about whether or not part of this potential can be realized."

The director emphasized that numerous obstacles hinder the full utilization of this potential: "For instance, a planned renewable energy project may overlap with another initiative in the same area. There are also various limitations offshore. We are working intensively with SOCAR Green to address these issues. Typically, only about 20% of our economic potential is realized in renewable energy projects."

He added that the second issue is the study of investment, commercial conditions, companies and their portfolios: "This requires a broad and detailed approach. The third component involves technical issues. Based on our analysis, by the end of 2027, Azerbaijan could integrate up to 2 gigawatts of renewable energy into its national grid."