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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 2005 Country Profile

View 2002 Country Notes  (768 kB pdf)

Latest Developments


TitleSummarypubDate
Report From Moscow Energy Trade FairEven though the effects of the global financial and economic crisis have affected the Russian construction industry significantly, interest in innovative building and energy technology was unabated at SHK MOSCOW 2009, 13th International Industrial and Technology Trade Fair for Heating, Air Conditioning, Ventilation, Refrigeration, Building Automation, Sanitation and Renewable Energies. A total of 11,300 trade visitors from the CIS and neighboring countries attended Russia’s leading event for this industry and 200 exhibitors from 19 countries showcased their products on 107,600 square feet of exhibit space.
21-May-09
Azerbaijan Hydro Plant Announced
National energy operator of Azerbaijan, Azerenerji OJSC, launches new project - construction of the 50 MW Fizuli hydroelectric power station.
15-Apr-09
EBRD, Energy Community to Host Regional Energy Forum in Sarajevo
“Investing in electricity generation and renewable energy” 30-31 March 2009, Holiday Inn Hotel, Sarajevo
The EBRD and the Energy Community will host a Regional Energy Forum in Sarajevo, Bosnia-Herzegovina, on Monday 30 and Tuesday 31 March 2009, which will focus on investment opportunities in electricity generation and renewable energy.
23-Feb-09
Azerbaijan and Greece Sign Renewable Energy Accord
he talks between the Presidents of Greece, Karolos Papoulias and Azerbaijan, Ilham Aliyev, culminated in the signature of four bilateral agreements including a memorandum of understanding in renewable energy sources and energy efficiency sectors, Athenian official news agency reported.
16-Feb-09
Transmission Project for Azerbaijani Hydro Plant
Loans for a Power Transmission Enhancement Project worth US$240M are being finalized. The transmission will branch from the Mingechevir hydropower station.
02-Feb-09
Azerbaijan Plans Carbon Neutral Island
Commissioned by Aurositi, Denmark-based BIG Architects has master-planned Zira Carbon Neutral Island, which will be located on the Caspian Sea, in the bay of the capital city Baku.
The main highlight of this master plan was to make the Zira Island completely independent of external resources, achieved through the mix of traditional Azerbaijani building tradition and new technologies.
02-Feb-09
Azerbaijan Interconnection Law an Issue for Hydro
Baku, Fineko/abc.az. International investors do not consider Azeri legislation as sufficient to construct private power stations in the country.
15-Jan-08
Hydro Rehab Needed and Considered in Azerbaijan
Azerbaijani Government charged Ministry of Emergency Situations of Azerbaijan to establish order of hydroelectric power stations rehabilitation Mingechevir cascade being first priority.
12-Dec-07
Bank Engineer Reviews Azerbaijan Hydro Potential
KfW launches effort to develop small hydropower projects in Azerbaijan
 
Baku, Fineko/abc.az. German bank KfW’s engineer for hydroelectric power stations (HPSs) traveled to Azerbaijan. “His trip goal is preliminary study of prospects of preparing and realization of a pilot project of small HPSs in accordance with a programme of Azerenerji (Azerbaijan State Electric Company),” the KfW office said.
The Azerenerji Programme includes construction of around 20 small HPSs.
“Study will be conducted in Gakh and Zagatala area in which such stations operated once.
04-Dec-07
Azerbaijan Wind Plan Grows
Baku, Fineko/abc.az. The Ministry of Industry & Energy (MIE) of Azerbaijan and South Korea’s STX Energy have completed talks relating to updating the STX’s feasibility study on a wind power station project in country’s Gobustan region (39 km far of Baku).
 
11-Oct-07
Fifty Small and Medium Size Hydropower Stations for Azerbaijan
Azerbaijan, Baku /corr. TrendCapital A. Badalova / Azerbaijan’s Minister of Industry and Energy, Natig Aliyev said on 3 October at a meeting with the Turkish entrepreneurs that in the near future, Azerbaijan will begin constructing some fifty small- and medium-sized hydroelectric power stations.
03-Oct-07
Azerbaijan Renewable Energy Efforts Reviewed
The Azerbaijani government has recognized this challenge and launched new initiatives for the use of alternative energy. These alternative energy sources can be funded with profits generated by the exploitation and sale of the country’s oil reserves.
12-Sep-07
Azerbaijan Wind Power Project Possible by 2009
A South Korean company is interested in a possible 20 MW wind project on the Caspian Sea.
20-Aug-07
Azerbaijan Hydro Reconstruction Planned
Reconstruction of the Mingyachaur hydroelectric power plant is planned by the Azerenergy state power generator.
20-Apr-07
Azerbaijan Plans Renewable Energy Assessment
The project, supported by the Government of Finland, and the Asian Development Bank, developed an action plan to boost renewable energy development and design pilot projects for the most appropriate renewable energy options.
04-Apr-07
Biomass Co-firing in Europe - Conference
On behalf of the Integrated European Network for Biomass Co-firing (NETBIOCOF), you are invited to join us at the International Conference in Biomass Co-firing in Europe. This event will be held on July 2-4, 2007 in Budapest, Hungary.
 
28-Mar-07
Azerbaijan Agreements on Renewable Energy Signed
Mr. Marco Borsotti, UNDP Resident Representative, and Mr. Natig Aliyev, the Minister of Industry and Energy, have signed two agreements to support development of renewable energy in Azerbaijan, with a focus on hydro and wind energy.
23-Jan-07
Hot bioethanol sector helps out agriculture
A project combining a bioethanol plant, a port and a logistics centre being undertaken by Switzerland’s Sirabel and Hungarian investors will soon enter its second phase. The HUF 55 billion (EUR 203 million) project on the Danube in southern Hungary is near Fadd-Dombori.
31-Jul-06
Wind Potential in Azerbaijan
Azerenergy has investigated the potential for wind energy in some regions, and further measures towards implementation are expected.
28-Feb-06
Azerbaijan Considers RenewablesInfluential companies of the world submitted many proposals to the Ministry of Industry and Energy (MIE) to start using alternative energy sources, especially wind and solar energy.
22-Nov-05

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 Projects

Project TitleTechnologyCapacity MWStatusSponsor
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
VarvaraHydroelectric16.5
Operating
YenikendHydroelectric150
Operating
Mugan HPPHydroelectric6
Operating
Aras HPPHydroelectric22
Operating
Enikend HPPHydroelectric112
Operating
Khizi Wind FarmWind1
Construction

 Policy/Regulatory
Policy NameTechnologySponsor
Azerbaijan Asian Development Bank HydroHydroelectricAsian Development Bank


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