Since the role of renewables in energy security is growing, Azerbaijan aims to increase their share in the country’s power generation and is currently studying international experience in development of renewable energy sources and drafting relevant regulation.
BP, which has been playing a key role in the development of the oil and gas sector in Azerbaijan, will also become the country’s partner in the field of renewable energy. A respective document was signed in late 2018.
Parviz Shahbazov, Azerbaijani Energy Minister, received BP’s William Lin and Gary Jones in Baku to explore potential opportunities for renewable energy sector development. BP highlighted its interest in joining both solar and wind energy projects in the country. Therefore, the projects to be implemented through BP involvement, could result in a greater renewable energy’s share in Azerbaijan’s energy balance.
Azerbaijan is currently making diverse steps to promote alternative energy sector, aiming to reduce its dependency on oil and gas, whereas its favorable geographic location and climatic conditions allow a widespread operation of environmentally friendly alternative energy sources.
Apart from BP, the Energy Ministry has already signed memorandums of understanding with TOTAL and Equinor on alternative energy cooperation. The country is also finalizing a new draft law on alternative energy sources together with Norwegian company DNV GL.
According to the Market Analysis Azerbaijan 2019, expansion of renewable electricity generation is estimated at 430 MW in 2018-2020, 840 MW in 2021-2025, and 925 MW in 2026-2030. The share of renewables in the total power generation is expected to account for 15% by 2020, 25 to 30% by 2025, and 35 to 40% by 2030.