Azerbaijan plans pilot projects on geothermal energy

As part of the national geothermal roadmap, Azerbaijan plans to implement pilot projects to demonstrate the technical and economic efficiency of geothermal energy, according to Rana Humbatova, Deputy Director of the Azerbaijan Renewable Energy Agency (AREA) under the Ministry of Energy, Report informs, referring to the AREA.

Speaking at the annual meeting of the Global Geothermal Alliance held within the framework of the 16th Assembly of the International Renewable Energy Agency (IRENA) in Abu Dhabi, UAE, Humbatova noted that these projects will cover centralized heating supply systems, the reuse of existing oil and gas wells for heat and limited electricity generation, as well as direct applications in agriculture, particularly for heating greenhouses.

She also provided information on the work carried out under the "Socio-Economic Development Strategy of the Republic of Azerbaijan for 2022–2026" in the field of renewable energy, including geothermal energy.

In addition, the roadmap "Assessment of the Direct Use Potential of Geothermal Resources in Azerbaijan," prepared in 2025 under the World Bank's ESMAP program, and its key findings were presented to participants.

It was noted that Azerbaijan's preliminary geothermal heat potential is estimated at 571.2 MW, while its geothermal electricity generation potential is 57.1 MW. The study analyzed the existing legislative framework and reviewed international experience to identify the necessary incentive mechanisms and simplify permitting processes to accelerate geothermal energy deployment.

Furthermore, it was highlighted that the next strategic document covering 2027–2030 will include a detailed feasibility study based on the drilling of exploration wells. This study will also assess the potential for extracting critical minerals through the analysis of geothermal fluid composition.

Humbatova also emphasized that the development of geothermal energy aligns with the green energy zones initiatives in the Karabakh and East Zangazur economic regions, as well as in Nakhchivan: "This approach is important not only for contributing to industrial decarbonization but also for balancing variable renewable energy sources and reducing natural gas consumption in heating supply."

She added that international cooperation is one of the main priorities of Azerbaijan's energy policy: "Azerbaijan attaches special importance to active membership in the Global Geothermal Alliance and values the Alliance as an important platform for knowledge exchange and sharing of best practices."

Azerbaijan has been a member of the Global Geothermal Alliance since 2023.