BAKU, Azerbaijan, June 2. Socar will become a diversified energy company by 2035, Socar Vice President Afgan Isayev said during a panel discussion held on the second day of Baku Energy Week, Trend reports.
According to him, Azerbaijan has taken important steps toward developing renewable energy projects, and government support for this sector is constantly increasing.
Isayev noted that previously, documents providing for certain tax incentives were submitted for renewable energy projects. Under the new legislation, the term of these incentives has been extended from 7 to 30 years, which significantly increases the financial sustainability of the projects.
He noted that intergovernmental agreements play an important role in the implementation of international energy projects.
“We have seen this firsthand in the implementation of the Southern Gas Corridor, the Baku–Tbilisi–Ceyhan pipeline, and other oil and gas infrastructure projects. A similar approach can be applied to renewable energy and energy interconnection projects. All the necessary mechanisms for this already exist; they simply need to be adapted and applied to new projects,” the vice president emphasized.
Moreover, Isaev noted that in some countries, including Turkey, agreements concluded with the governments of host countries have been ratified by parliaments, and he emphasized that such support mechanisms are crucial for the implementation of major energy projects.
Speaking also about SOCAR’s strategic transformation process, the vice president pointed out that in 2023, the company revised its strategy for decarbonization and overall development.
“Our goal by 2035 is to become not just an oil and gas company,
but an energy company with a balanced portfolio. This portfolio
will include both the hydrocarbon business and low-carbon sectors,”
he said.
According to Isayev, the new strategy is built on three main
pillars: decarbonizing the core business, updating the
organizational structure, and increasing investments in low-carbon
business areas, particularly in renewable energy.
He added that the company has achieved significant results in reducing methane emissions and has already fully completed the organizational transformation process.
The vice president also explained that SOCAR opted to partner with leading global companies to accelerate the acquisition of knowledge and experience in the renewable energy sector.
To this end, the SOCAR Green program was launched in March 2024.
“Thanks to the support of our partners, such as Masdar, bp, China Energy, and PowerChina, we are rapidly expanding our capabilities in the fields of renewable energy and energy storage systems. This collaboration is of immense importance to us and has already yielded highly successful results,” Isayev stressed.
