Country manager: World Bank assesses Azerbaijan's geothermal potential – EXCLUSIVE

The World Bank (WB) is providing technical assistance to assess the potential of Azerbaijan's geothermal resources, Stefanie Stallmeister, the World Bank"s country manager for Azerbaijan, told Report.

"We are ready to continue cooperation-both through private sector and government financing, depending on what proves most appropriate for developing specific areas in this field. Currently, technical assistance is ongoing, and it remains to be determined whether additional funding will be required," said the country manager.

As announced last week by SOCAR Green-a subsidiary of the State Oil Company of Azerbaijan (SOCAR)-the country's first geothermal power plant is expected to be commissioned around 2030. SOCAR is currently seeking a partner-investor with expertise in geothermal technologies.

It should be noted that SOCAR Green collaborates with oilfield services companies Baker Hughes Co. (USA) and Schlumberger (SLB) in the field of geothermal energy. Agreements with these companies were signed during the COP29 climate conference in November 2024.

Under the agreement, Baker Hughes is working with Azerbaijan to identify and assess the country's geothermal potential, while SLB GeothermEx has been engaged by SOCAR Green as a consultant to evaluate prospective geothermal sites in the Karabakh region.

The Karabakh region is known for high volcanic activity and natural hot springs. Water temperatures can reach 100–150 degrees Celsius, creating potential for traditional steam power generation, direct heating for residential and industrial facilities, and other applications. The Istisu Valley, Garagol, and the Zuar hot spring have been identified as having significant potential for geothermal energy development, and a geological exploration program has been developed.