BAKU, Azerbaijan, October 28. Azerbaijan plans to add 2 gigawatts of electricity generation capacity from renewable energy sources in 2027–2028, Elnur Soltanov, Azerbaijan’s Deputy Minister of Energy, said on Wednesday at the 9th Sustainable Development Goals (SDGs) Dialogue held in Baku, Trend's correspondent reports from the event.
The deputy minister added that by 2030, the country plans to increase installed capacity in this sector and raise the share of renewable energy in total electricity generation to 34 percent.
Moreover, the deputy minister noted that the development of renewable energy sources is one of the main priorities in Azerbaijan’s energy sector. Currently, the share of renewable energy sources in the country’s total installed electricity generation capacity stands at approximately 21.5%.
According to him, the implementation of wind and solar energy projects in the coming years will significantly increase this figure.
“The process of creating an additional 2 gigawatts of capacity by 2027–2028 has already begun. The next stages also call for the commissioning of new wind and solar energy capacity. Our goal is to increase the share of renewable energy sources in total installed capacity to 34% by 2030,” he noted.
Soltanov emphasized that Azerbaijan aims to strengthen its position in the renewable energy sector, where it has previously established itself in the traditional energy sector.
“Azerbaijan holds an important place in the global oil industry and plays a significant role in the region’s natural gas sector. Our country also has the potential to become one of the regional leaders in the field of ‘green energy,’” the deputy minister stated.
He noted that renewable energy projects create conditions for attracting significant investment to the country. For example, the creation of approximately 2 gigawatts of new generating capacity is expected to attract about $2 billion in investment to the country.
According to the deputy minister, Masdar, a company from the United Arab Emirates, is one of Azerbaijan’s key strategic partners in this sector. As part of the company’s projects, the country plans to create more than 1 gigawatt of renewable energy capacity by 2028.
At the same time, Soltanov stated that the development of renewable energy projects is not limited to the creation of new generating capacity. Modernizing and strengthening the power grid are also essential components of this process.
“The development of new renewable energy capacity could attract billions of dollars in investment to the country. However, to ensure the safe and efficient transmission of this energy to the grid, the government must also allocate significant funds to strengthen the power grid. In its current state, the grid is not capable of accommodating renewable energy in any volume or with the necessary flexibility,” he said.
The deputy minister noted that since solar and wind energy production depends on weather conditions, managing electricity generated from these sources is more complex than with traditional energy production. Therefore, it is important to establish storage systems (battery installations) within the power grid and expand the grid’s balancing capabilities.
“Electricity is a commodity for which the balance between production and consumption must be maintained at all times. If the balance between production and consumption is disrupted, serious problems can arise in the power grid, and even large-scale power outages can occur. Therefore, as the share of renewable energy grows, issues related to power grid management and balancing are becoming increasingly important,” Soltanov emphasized.
He added that, in some cases, renewable energy is already competing with traditional energy sources under market conditions. However, this competition does not occur on an equal footing in all circumstances, and in addition to the economic viability of projects, it is necessary to take into account grid infrastructure, energy storage technologies, and system flexibility.
According to the deputy minister, expanding renewable energy production, strengthening the power grid, and building battery storage systems should be carried out in parallel. This approach could help Azerbaijan achieve its “green energy” goals, attract new investments, and enhance the resilience of the energy system.
