The Azerbaijan government has introduced a minimum investment requirement for electricity production initiatives that utilize renewable energy sources.

Source: Trend

Prime Minister Ali Asadov has signed a resolution pertaining to this requirement.

The decree specifies a minimum investment threshold of 30 million manat (approximately $17.6 million) for these renewable energy projects, outlining the government's procurement obligations.

Azerbaijan aims to enhance the contribution of renewable energy sources to the country’s energy balance, targeting 30 percent by 2030. The Ministry of Energy reports that the technical potential for renewable energy sources in Azerbaijan is 135 GW on land and 157 GW at sea. The estimated economic potential includes: 27 GW overall, 3,000 MW from wind energy, 23,000 MW from solar energy, 380 MW from bioenergy, 520 MW from mountain river sources.

The Garadagh solar power plant, boasting a capacity of 230 MW, is the largest in the Caspian region and CIS, launched in 2023 in partnership with Masdar Company. Funded by foreign investments totaling $262 million, this facility is the first industrial solar power plant in Azerbaijan with international collaboration. It is expected to generate 500 million kWh of electricity annually, conserving 110 million cubic meters of natural gas.

Construction is ongoing for the 240 MW Khizi-Absheron wind power plant in collaboration with ACWA Power. Last year, several significant agreements were signed with ACWA Power, including:

A “Project Execution Agreement” for a 1.5 GW offshore wind power project,

An agreement for a 1 GW onshore wind power plant,

A “Memorandum of Understanding” for the development of energy storage systems in Azerbaijan.