Azerbaijan outlines green energy priorities at EBRD event in London

Azerbaijan may reach its renewable energy target of 32% in the national energy mix by 2028, two years ahead of schedule, Deputy Energy Minister Elnur Soltanov said at a panel discussion during the EBRD Annual Meeting in London. A recording of the event was published on the EBRD’s official website.

Soltanov said the country’s installed green energy capacity is expected to reach 8 GW in the coming years, while domestic consumption is around 3 GW. This surplus is intended for export, underscoring the need for robust cross-border infrastructure.

He warned against connectivity issues seen in Europe, such as those between Spain and France, where weak interconnection limited renewable energy exports.

The first phase of integrating over 2 GW of renewables into the national grid, covering eight investment projects, could attract over $2 billion in investment. According to the ministry, for every dollar invested in generation, an additional 33 cents is needed for grid and integration costs.

Four renewable energy-related laws have already been adopted in Azerbaijan, and three more are in preparation. A forthcoming district heating law will, for the first time, support the use of heat pumps and centralized heating systems.

The government has also approved rules allowing households to install solar panels up to 150 kW for self-consumption. Excess electricity can be sold to the grid — a major step toward decentralized generation and bilateral electricity markets.

While Azerbaijan does not aim to lead globally in green hydrogen, Soltanov said the country is evaluating hydrogen production from surplus renewables, especially during periods of low demand. Offshore wind projects in the Caspian Sea could facilitate hydrogen production for storage or export.

Soltanov concluded by saying the Caspian region’s wind potential, infrastructure and plans for submarine cables position Azerbaijan as a potential key player in the future low-carbon, digital energy market.

N.Tebrizli