BAKU, Azerbaijan, June 17. Azerbaijan plans to increase the installed capacity of renewable energy sources to 8 GW by 2032 and views the export of "green" electricity as one of the key directions for the development of the energy sector, Elmir Musayev, CEO of SOCAR Green, stated during a panel session within the framework of the annual meetings of the Islamic Development Bank (IsDB) Group in Baku, Trend's correspondent reports from the event.
According to Musayev, SOCAR Green's current projects are only the first stage of a large-scale capacity ramp-up in renewable energy.
"Today, SOCAR Green already has a formed portfolio of projects. These are only the projects of our company, whereas other initiatives involving foreign investors are also being implemented in Azerbaijan. We view them as the first stage of the country's transition to 'green' and clean energy," he said.
The CEO of SOCAR Green noted that the further development of the industry will require the modernization of the national power grid.
"To integrate a larger volume of energy from renewable sources, it is necessary to modernize and optimize the national power grid. This is precisely where cross-border projects acquire special significance," he emphasized.
Musayev recalled that the country's leadership has set ambitious goals in the field of renewable energy. "By 2032, Azerbaijan expects to bring the capacity of renewable energy facilities to 8 GW. Already, projects for approximately 2 GW are in the implementation stage. We expect the share of renewable sources in installed capacity to reach 34 percent by 2028 and about 38 percent by 2030," he noted.
According to the CEO of SOCAR Green, this figure is planned to increase to 43 percent by 2035.
"This demonstrates the scale of the steps being taken by the state to develop renewable energy. These volumes significantly exceed Azerbaijan's domestic electricity needs," he stated.
Musayev noted that, in this regard, the country is banking on the export of ecologically clean electricity.
"The next stage is the export of 'green' energy. The growth of domestic demand will not be that high, so we must focus on external markets," he said.
He emphasized that Azerbaijan already possesses successful experience in implementing large-scale international energy projects.
"First, there was the Baku-Tbilisi-Ceyhan oil pipeline, which opened access for Azerbaijan to European and world markets. Then, the Southern Gas Corridor project was implemented. These projects proved that even in the presence of numerous political, technical, construction, and environmental risks, a long-term vision allows for achieving success," Musayev noted.
As one of the key directions for development, he named the creation of international "green" energy corridors.
"The flagship project is the subsea energy cable along the bottom of the Black Sea, which will connect Azerbaijan, Georgia, Romania, and Hungary. Its length will be about 1,100 kilometers," Musayev said.
In addition, according to him, a route is being worked out that will connect the countries of Central Asia with Azerbaijan and further onward to Europe.
"We are talking about connecting Kazakhstan and Uzbekistan to the green electricity export system through Azerbaijan and the subsea cable along the bottom of the Black Sea. This will allow for utilizing the huge potential of Central Asia's renewable energy," Musayev said.
He also announced work on another export direction.
"The third 'green' corridor provides for supplies through Nakhchivan to Turkey, and then to Bulgaria, utilizing already existing export routes," the CEO of SOCAR Green noted.
According to Musayev, the implementation of such projects is impossible without unified regulatory rules.
"Stable and predictable regulatory conditions are necessary. Investors must understand what the tariffs will be, how timely permits will be issued, and how aligned the rules are between countries. Fragmented regulation significantly increases the cost and timeframe of project implementation," he emphasized.
He also highlighted the need to strengthen institutional capacity and modernize energy grids.
"It is not enough to connect countries with power transmission lines. It is necessary to have modern national power systems capable of receiving and distributing additional volumes of electricity," Musayev stated.
According to him, a decisive role in the implementation of such initiatives belongs to the private sector.
"States and international financial institutions will play an important role; however, the main driver of such projects will be precisely the private sector. It is more efficient, more flexible, and more interested in implementing such initiatives," the CEO of SOCAR Green said.
Concluding his speech, Musayev emphasized that access to long-term financing remains a key condition for the implementation of cross-border projects.
"If we are talking about projects costing billions of dollars, it is impossible to achieve results without accessible and long-term financing," he said.
