BAKU, Azerbaijan, October 15. With its long history of oil production, Azerbaijan is likely to remain a key exporter of crude oil, and its pragmatic approach to energy transition may establish the country as a regional leader in decarbonization, a report by the King Abdullah Petroleum Studies and Research Center (KAPSARC) titled "Azerbaijan: Energy, Decarbonization, and Opportunities" states, Trend reports.
"Azerbaijan adopts a very pragmatic approach to its energy transition, setting achievable goals. While the development of renewable energy sources has garnered significant attention from government bodies in recent years, it remains a relatively nascent phenomenon in Azerbaijan, which continues to focus on fossil fuels due to its long history of oil production and status as a leading exporter," the KAPSARC study notes.
The authoritative organization points out that since 2022, Azerbaijan has been presented with a unique opportunity to boost its natural gas supplies to the EU, where demand for these resources is significant.
Nevertheless, Azerbaijan's capacity to deliver the required volumes of gas also relies on additional investments and cooperation with other countries on this matter.
"Azerbaijan can only address its fossil fuel challenges by attracting foreign investments. Achieving this goal largely hinges on building investor trust. Developing a long-term energy strategy will help define a strategic direction for its energy sector," KAPSARC experts added.
They also stress the importance of Azerbaijan developing a low-carbon energy strategy that outlines key priorities for the coming decade.
"Saudi Arabia can support Azerbaijan with its expertise in energy transition. We welcome the involvement of the Arab company ACWA Power in Azerbaijan's wind energy sector and its hydrogen project. There are many opportunities for decarbonization initiatives in the country. Azerbaijan has the potential to become a significant player in the energy transition across Central Asia and the Caspian Sea regions, and the upcoming 29th session of the UN Framework Convention on Climate Change in Baku this November will further facilitate this process," the KAPSARC report notes.