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Azerbaijan

Country Profile
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Latest Developments
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Projects
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Policy/Regulatory

 

 

Azerbaijan has large reserves of oil and gas. This acts as a disincentive for the promotion and development of the potentially significant renewable energy resources.  Built during the Soviet era, Azerbaijan's power infrastructure is generally in poor condition, with minimal public investment and maintenance since the country’s independence. The country's economic contraction during the mid-1990s, along with systemic problems (such as prices capped below the market rate and frequent non-payment by customers) have left Azerbaijan's power sector without sufficient capital to upgrade aging power generation facilities.

The country has a large potential for renewable energy power generation in the areas of wind, hydro and biomass. Total wind power technical potential is estimated to be 1,500 MW.  Biomass and hydro also have substantial potential for power production.  The Nakhchevan autonomous republic is particularly suited to renewable energy development due to its separation from Azerbaijan proper and the fact that it has a power deficit.

Country Profile and Notes

More information is provided in the country profile and country notes, including specific resource and energy sector information:

View 2009 Country Profile

View 2005 Country Profile (203 kB pdf) 

View 2002 Country Notes  (768 kB pdf)

Latest Developments


TitleSummarypubDate
Azerbaijani Companies Invited to Participate in Ukrainian Hydropower
One project is the improvement of Dniester power plant’s hydro facilities ($1.057 bn).
18-Nov-11
South Korean Company Plans Hybrid Solar Plant in AzerbaijanThe total cost of the project is estimated at $2.25 million, including $1.9 million for machinery and equipment ($300,000 for rechargeable batteries) and $300,000 for construction work. Plant engineering was evaluated at $40,000.
14-Nov-11
Development Banks Involved in Hydropower Projects


The involvement of multi-national banking institutions is critical to the completion and modernization of hydroelectric projects, particularly in the developing world. This article details nearly US$16 billion in funding recently awarded for work at more than 50 projects.

10-Nov-11
Money Starts to Flow to Azerbaijan Renewable Energy Efforts

The European Commission will issue the second tranche for Azerbaijan by the end of the year for energy development, spokesman for the European Commission Federico Berna said in Baku recently, Trend reports.

01-Nov-11
Solar PV Factory for SumgaitA solar module factory being constructed in Sumgait will begin mass production in December, Deputy Head of the State Agency on Alternative and Renewable Energy Sources in Azerbaijan Jamil Melikov told journalists recently. 
01-Nov-11
The Caspian: Technologies for the Environment (CTE) International Exhibition
The Caspian: Technologies for the Environment (CTE) International Exhibition will take place in Azerbaijan for the first time on 2-4 November. The event will be held in Baku Expo Centre, with the support and active participation of the Ministry of Environment and Natural Resources of Azerbaijan.
12-Oct-11
Azerbaijan and Spain Interested in Renewable Energy CooperationIn particular, the sides mentioned the possibility of arrival of a large Spanish business delegation in Azerbaijan in January-February.
22-Sep-11
Azerbaijani President opens Gobustan Experimental Range

Azerbaijani President Ilham Aliyev has attended the opening of the Gobustan Experimental Range of the State Agency for Alternative and Renewable Energy and Training Center within his trip to Gobustan region recently.

13-Sep-11
Azerbaijan Wind Study by Inogate to be Released
Baku, Fineko/abc.az. Implementation of European Union’s INOGATE program project " Studying wind energy potential at the territory of Azerbaijan, Caspian shore" has come to an end.
11-Aug-11
Nagorno Karabakh Wood Fuel
Prime Minister of Armenia Tigran Sargsyan visited briquet department of Askeran’s Avetaranots village wood-processing plant on August 1, 2011.
02-Aug-11
HPPs Planned for AzerbaijanThree hydroelectric power stations are to be built in Azerbaijan this year.
25-Jul-11
Azerbaijan Solar Map Created
Ecology and Natural Resources Minister of Azerbaijan Huseyngulu Bagirov announced at the 'Climate change and renewable energy sources in Black Sea region' Roundtable that “a map of solar radiation has also been developed. All these data were presented to alternative energy agency at the Industry and Energy Ministry."
08-Jul-11
Nano/Energy Researcher to Baku State University Azerbaijan

The U.S. Department of State and the J. William Fulbright Foreign Scholarship Board recently announced that University of Delaware Professor S. Ismat Shah has received a 2011-12 Fulbright Scholar grant to conduct research and lecture at Baku State University in the Republic of Azerbaijan. Shah’s research focuses on the synthesis and characterization of nanoscale materials, with a particular focus on energy applications. His expertise in thin-film photovoltaics, or solar cells made from plastics, is of special interest to scientists in Baku State University’s Nano Center because solar power is considered an untapped resource in Eastern Europe, a region that receives abundant sunshine throughout much of the year.

21-Jun-11
NIB Opens Environmental Loan Facility for Black Sea Countries
The Nordic Investment Bank (NIB) and the Black Sea Trade and Development Bank (BSTDB) have concluded a new agreement opening a loan facility aimed at reducing greenhouse gas emissions in the BSTDB's member countries.
The new loan programme has a 10-year maturity and totals EUR 30 million. At least 70% of the loan programme is to be allocated for this purpose of reducing the emissions of greenhouse gases in countries around the Black Sea. Sub-projects are expected to be implemented in the sectors of renewable energy, energy efficiency and energy saving as well as public transportation. The BSTDB is an international financial institution of Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine.
09-Jun-11
Azerbaijan's National Academy of Sciences: Alterantive Energy Conference
The director of the academy's Institute of Radiation Problems, Adil Garibov, spoke about the state program for the use of alternative and renewable energy sources in 2005-2013.
31-May-11
Azerbaijan State Agency for Alternative and Renewable Energy Program to Identify Resources
Twenty-seven stations will be set up across the country to monitor wind, sunshine and rivers, Badalov said. The information provided by these stations will allow the best locations to be chosen for hydropower, wind and solar plants.
27-Apr-11
Azerbaijan Bank Wins Best Sustainability Award in Project Finance Award 2010In March of 2011 IBA already received Best Sustainability Deal reward from Emeafinance journal. The award was granted for the bank’s participation in financing of the first project Yeni Yashma on production of wind power in Azerbaijan. The project worth about 118 million euro envisages construction of 20 wind installations with overall capacity 50 megawatt.
20-Apr-11
Azerbaijan: Substation at WTE Plant Needed
Azerbaijani Economic Development Ministry has announced a tender to purchase work on the installation of certain auxiliaries and a 15/110 kV substation to transmit electricity produced at the municipal solid waste incineration plant to the state energy system, the tender commission said recently.
04-Apr-11
Azerenergy Estimates Azerbaijan Hydropower Potential

Azerenergy head Etibar Pirverdiyev said 280 small hydropower plants with a total capacity of 700 megawatts and an annual production of 3.5 billion kilowatt-hours could be built on rivers and at water industry facilities.

28-Mar-11
Azerenergy: Azerbaijan to Build 10 Small HPPs in 2011
Azerbaijan will witness many projects in 2011. In this year, a total of 10 small Hydro Power Stations will be constructed in the countryaccording to Azerenergy Vice-President Marlen Asgerov.
17-Mar-11

(Items 1 to 20)Next

 
 Projects

Project TitleTechnologyCapacity MWStatusSponsor
Shurabad Wind FarmWind48
planned
Caspian Technology Company
Sitalcaj Wind FarmWind3.6
under construction
Trans TS MMC
Zeyxur HPPHydroelectric12
planned
Inter Energy LLC
Gusar-1 HPPHydroelectric1
under construction - 2011 completion
Azenco
Balakan-1 Hydro Power StationHydroelectric0.5
under construction
Balakhany MSW WTEWaste to Energy20
under construction
CNIM
Baku Wind FarmWind35
financed
Samur-Davachi Hydroelectric Power Station to be BuiltHydroelectric36
planned
Director of the Power Department of the Azerbaijani Ministry of Industry and Energy
Mingechevir Hydro TransmissionHydroelectric
planned
Asian Development Bank
Gobustan Wind Power StationWind20
planned
South Korea’s STX Energy Co. Ltd.
Azerbaijan - Hydro Reconstruction WorkHydroelectric
planned
Islamic Development Bank
Lerik BiogasBiogasNA
Operating
Ministry of Ecology and Natural Resources
Guba BiogasBiogasNA
Operating
Ministry of Ecology and Natural Resources
Ismayilly BiogasBiogasNA
Operating
Ministry of Ecology and Natural Resources
Siyaku BiogasBiogasNA
Planned
Ministry of Ecology and Natural Resources
Piran BiogasBiogasNA
Planned
Ministry of Ecology and Natural Resources
MingechevirHydroelectric401.6
Operating
SarsangHydroelectric50
Operating
ShamkirHydroelectric380
Operating
ShekiHydroelectric1.6
Operating

(Items 1 to 20)Next

 Policy/Regulatory
Policy NameTechnologySponsor
Azerbaijan Asian Development Bank HydroHydroelectricAsian Development Bank
Renewable Energy Development Programall renewablesMinistry of Industry & Energy of Azerbaijan
Renewable Energy legislationAll renewablesIndustry and Energy Minister
State Agency for Alternate & Renewable Energy Sources;Biofuels;Solar PV;WindMinistry of Industry & Energy
Inter-Agency CooperationAll RenewablesOrganization for Security and Co-operation in Europe
Statute on the State Agency for Alternate & Renewable Energy SourcesAll RenewablesMinistry of Industry & Energy of Azerbaijan
Intergovernmental CooperationAll RenewablesMinister of Industry and Energy
Renewable Energy Development SupportAll RenewablesAzeri President
Presidential Decree on Renewable EnergyAll RenewablesFinance Ministry
Japan Ambassador Statement on Azerbaijan-Japan Cooperation;Solar PV;WindJapanese Ambassador to Azerbaijan Masamitsu Oki
Presidential Energy Policy StatementAll RenewablesPresident Ilham Aliyev
Presidential StatementAll RenewablesAzerbaijani President Ilham Aliyev
Director of Agency for Alternate & Renewable Energy appointed in AzerbaijanAll RenewablesAzerbaijan President Ilham Aliyev
Feed-In TariffAll RenewablesAgency for Renewable & Alternative Energy Sources under the Ministry of Industry & Energy of Azerbaijan
Azerbaijan to Coordinate Alternative Energy in Islamic StatesAll RenewablesOrganization of the Islamic Conference on Scientific and Technological Cooperation


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