BAKU, Azerbaijan, October 3. Azerbaijan’s renewable-based power generation (including hydropower) is expected to triple from just over 7 percent last year to 22 percent of overall generation by 2030, Rystad Energy, an independent research and business intelligence company, told Trend.
"Azerbaijan is stepping up efforts to boost the renewable share of its power mix to reduce its domestic carbon footprint and free up natural gas for export. The country aims to use its potential for solar and wind energy to raise the renewables share of its power generation to nearly one-third from less than 10 percent currently through $2 billion worth of investments in green energy initiatives. International investors have shown significant interest in funding these projects, and the country is looking to solidify these commitments through its role as host of the United Nations Climate Change Conference (COP29) in November this year. More renewables at home will help the country meet its target of doubling its gas exports to Europe by 2027 and allow it to add green hydrogen production as part of its long-term energy strategy," said the company experts.
Rystad Energy notes that total expenditure in non-fossil fuel energy in Azerbaijan has grown from less than 1 percent in 2020 to over 7 percent last year and is set to cross 20 percent by the end of the decade.
"This is set to increase new installed capacity from 19 percent this year to 30 percent in 2027. At the same time, the country will continue to push for more fossil-fuel investment to meet both its export ambitions and rising domestic demand," noted the analysts.
Rystad Energy recalls that natural gas made up most of the 92 percent fossil-fuel share of Azerbaijan's power-generation mix last year, corresponding to nearly half of the country’s overall gas demand.
"Hydropower accounted for 6 percent of the power mix, while onshore wind, solar PV and bioenergy combined made up 2 percent. Under Rystad Energy’s base case scenario for Azerbaijan, renewable-based power generation (including hydropower) is expected to triple from just over 7 percent last year to 22 percent of overall generation by 2030. The renewable share of the annual installed capacity is expected to double by the end of the decade, from 19 percent last year (mainly hydropower) to 38 percent in 2030, primarily through new solar PV and onshore wind projects. Gas-fired power will remain the baseload, however, contributing more than 75 percent of overall power generation in 2030 and remaining a transitional fuel in the long term," said the company.
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