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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
Azerbaijan Plans 61 Small Hydro Power Plants
The Ministry of Industry & Energy of Azerbaijan and Azerenerji already have a plan for development of small hydroelectric power stations. For the next 5-10 it is planned to build 61 small hydro power stations with overall capacity of 350 MW to generate at least 3.2 bn kWh of power.
10-Jul-10
Asia Solar Energy Initiative Launched With US$2.25B
The initiative was launched on May 3, 2010 in the Uzbekistan capital Tashkent and the ABD said that it will provide an additional US$2.25bn to support projects with a combined generating capacity of 3000MW of solar power by 2012. The bank indicated that the combination of growing electricity demand, abundant desert and commitments to offset carbon emissions, made Central Asia a strong candidate for investment.
04-May-10
Ministry of Industry & Energy of Azerbaijan Announces Wind Projects
The Ministry’s report presented in Baku today says that the first project within the framework of the State Program of Use of Alternative & Renewable Energy Sources will be creation of a fleet of wind generators.
05-Apr-10
Azerbaijan Sets Renewable Energy Target
Natig Aliyev, Azerbaijan energy minister said 'If we can have 3-5% of our electricity generated by alternative energy in a couple of years, then we will have achieved our objective. He mentioned wind, geothermal and solar resources.  He reminded journalists that a State Agency for Alternative and Renewable Sources of Energy had been set up as part of the Ministry of Energy and Industry.
05-Apr-10
Azercell Telekom LLC Installs Solar/Wind Station

The station was installed in the Shahdagh mountain at the height of 2,910 m. The station is operating at full capacity. Wind generators are to be installed soon as well.

19-Mar-10
Azerbaijan Agency for Alternate & Renewable Energy Changes
The process of instituonalization and staff strengthening of the State Agency for Alternate & Renewable Energy Sources under the Ministry of Industry & Energy (MIE) is underway.
18-Mar-10
Asian Development Bank Sees Hydro Opportunities in Azerbaijan
The bank said that 43 small potential hydropower sites had been identified across Azerbaijan, analysed and crosschecked, and 21 of them had been considered as technically feasible. Of these, four projects have been deemed extremely attractive and recommended for inclusion in a proposed investment project.
03-Mar-10
EU Sees Great Potential for Renewables in Azerbaijan
Roland Kobia, head of the European Union mission to Azerbaijan, outlined Azerbaijan's alternative energy potential at a session of the Caspian-European Integration Business Club (CEIBC) March 1st.
02-Mar-10
Several Small hydro Plants Set for 2010 in Azerbaijan
Due to the fact that 2010 is declared as the Year of Ecology in Azerbaijan, JSC Azerenergy (production and distribution of electric power in Azerbaijan) envisages the beginning of construction of a number of small hydroelectric plants in mountainous regions of the republic, JSC President Etibar Pirverdiyev said today.
26-Feb-10
Azerbaijan Seeking Technical Assistance Regarding Renewable Energy Policy Development
Baku, Fineko/abc.az. The Agency for Renewable & Alternative Energy Sources under the Ministry of Industry & Energy of Azerbaijan has requested international technical assistance. Baku-based resident office of German development bank KfW asks technical assistance to fill in gaps in legislation and standard-legal acts concerning use of renewable and alternative energy sources in Azerbaijan.
 
17-Feb-10
German Backing Planned for Azerbaijan Renewables
Baku, Fineko/abc.az. The German government has backed the initiative of German development bank KfW in the area of assistance to projects of renewable and alternative energy sources in Azerbaijan. The Baku-based KfW representative office reports that Germany’s budget has reserved 40 million euro for these ends.
28-Jan-10
Planned Azerbaijan Wind Plant Faces Difficulties
Baku, Fineko/abc.az. Development of use of alternate and renewable energy sources in Azerbaijan has encountered problems. Well-informed sources say that wine power plant operating in Khizi region has already applied to the government wit a request to change a wholesale tariff for electricity for it.
28-Jan-10
Azerbaijan State Utility - "Wind, Solar, Biomass or Hydro Will Be Used in All Regions"
Baku. Nijat Mustafayev - APA-ECONOMICS. Alternative energy will be made use of in all regions of Azerbaijan in the future, said Etibar Pirverdiyev, President of AzerEnergy state utility. 
20-Jan-10
Bharat Heavy Electricals Ltd Eastern Europe Projects Discussed
Report on a Bulgarian CHP plant and Tajik hydropower projects.
01-Oct-09
Azerbaijan Wind Resource Explored
With the cooperation of the German company Energy Competence Centre GmbH (ECC) from Berlin and the Azerbaijan company Caspian Technology Company, the operation of the first wind energy turbine started in March 2009. In Yeni Yashma, Khizi Region, the pilot project consisting of two VESTAS V52 with each 850 kW power was connected to the grid.
07-Jul-09
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

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 Projects

Project TitleTechnologyCapacity MWStatusSponsor
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
VarvaraHydroelectric16.5
Operating
YenikendHydroelectric150
Operating
Mugan HPPHydroelectric6
Operating
Aras HPPHydroelectric22
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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