If successful, these storage systems would optimize renewable energy use and enable better load balancing across the grid, thus increasing the resilience of Azerbaijan’s energy infrastructure.
Diversifying and improving the energy capacity of the country to ensure energy security. Azerbaijan has significant untapped renewable energy potential, as it is a relatively sunny and windy country, and it also has sizeable hydro, biomass and geothermal resources.
According to the Ministry of Energy, the country’s technical potential for small hydro is 520 MW, which could generate up to 3.2 TWh annually. Azerbaijan’s Renewable Energy Agency under the Ministry of Energy (formerly SAARES) states that the country has up to 800 MW of geothermal energy potential.
The planned investment of $2.8 billion in solar and wind energy by 2027 underscores Azerbaijan’s shift towards diversifying its energy mix, traditionally dominated by oil and gas. A capacity increase of approximately 2 GW represents a substantial step toward energy independence and sustainability.
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