BAKU, Azerbaijan, October 1. The Ministry of Energy of Azerbaijan is working on two main directions for the development of the country's Nakhchivan Autonomous Republic as a green energy zone, Deputy Minister of Energy Orkhan Zeynalov told Trend.
"First, the concept of a 'green zone' in Nakhchivan is being developed, and second, the potential for exporting 'green' energy from the autonomous region will be thoroughly examined. In the near future, a contract will be signed with one of the world's leading companies to prepare a feasibility study (FS) on the planned export of green energy from Nakhchivan to Türkiye, with the prospect of reaching the EU in the second phase," Zeynalov said.
According to him, it's planned to launch 1.5 GW of wind and solar energy capacities in Nakhchivan by 2030.
"As for the export of electricity from the region, we are talking about one GW, but all the details regarding the export will be reflected in the FS," Zeynalov emphasized.
Arab and European companies are ready to participate in the creation of renewable energy sources in Nakhchivan, and negotiations are ongoing with them as part of the 'green zone' concept of the republic.
The deputy minister of energy also said that another project related to the export of electricity from Azerbaijan to Türkiye - AZURE (Azerbaijan Scaling-Up Renewable Energy Project) - is under discussion.
"Together with the World Bank and other potential investors, the project for transporting green energy to Türkiye - AZURE - is being discussed," Zeynalov explained.
The World Bank (WB), through its structure - the International Bank for Reconstruction and Development (IBRD) - announced the possibility of allocating $250 million for AZURE, and the outlook for the project's implementation will be clarified by the end of October.
According to Zeynalov, one of the current priorities for the Ministry of Energy is ensuring the safe integration of expected new green energy capacities, with a total generation of two GW, into Azerbaijan's internal power grid by 2027.
"We have recently completed a study on integrating new 'green' energy capacities into the internal grid of two GW by 2027. We are addressing the issue of safely and stably integrating these capacities," the official said.
He mentioned that the Ministry of Energy is studying international renewable energy projects with a total capacity of 28 GW.
"By 2027, the share of renewables in Azerbaijan's energy balance will be 32.6 percent, and by 2030 — 35 percent. We also see significant technical potential in the Caspian for creating wind power plants (WPPs). The WB has estimated this potential at 157 GW (the second-largest wind energy potential in the world after the North Sea). We have a solid foundation for its use, a good legal framework, and incentive mechanisms for investors.
It's the future WPPs on Azerbaijan's Caspian shelf that can provide the green energy planned for export through Georgia and the Black Sea to Europe (the Caspian Sea-Black Sea Energy project). We are talking about the Caspian Sea-Georgia-Black Sea-EU green corridor and the export of four GW of green energy and hydrogen. Recently, a joint venture has been established in Bucharest to implement this project, and the preliminary FS will be presented this November in Baku," added the deputy minister.
In the EU, Romania and Hungary are participants in this project, and Bulgaria's inclusion is being prepared.