Azerbaijan bets on green energy development in Karabakh - First State Program on "Great Return"

As Pier Paolo Raimondi, Research Fellow of the Energy, Climate and Resources Program at The Istituto Affari Internazionali, Italian international relations think tank, told Trend, Azerbaijan has a high potential in renewables development in terms of their diversification.

"Azerbaijan's renewable potential is quite high, yet largely untapped. Furthermore, the country has a good potential in terms of numerous renewable sources (sun, wind, hydro, biomass and geothermal). Now, the country will need to dedicate financial resources and a regulatory framework that will encourage the development of such potential," he said.

According to Raimondi, the establishment of such renewable energy hub in the South Caucasus, which Azerbaijan plans to create, may acquire high political significance. This could be a strategically important direction for international investment, as some European institutions are already considering.

The expert noted Raimondi noted the potential development of green hydrogen production in Azerbaijan with further export to Europe, which will contribute to strengthening the partnership between the EU and Azerbaijan.

"While electricity trade may contribute to strengthening the partnership between EU and Azerbaijan, long-distance electricity trade is quite challenging from the efficiency perspective. Instead, Azerbaijan could prefer to produce clean hydrogen and then export it to Europe through existing pipelines, after small technical and infrastructural adjustments,” he explained.

Having liberated its historical lands, Azerbaijan is carrying out enormous efforts to reintegrate these territories and to create new economic opportunities not only for itself but also for the countries of the wider region. European countries have repeatedly expressed their interest in renewable energy projects in Azerbaijan, which is also reflected in the recently signed Memorandum of Understanding between the EU and Azerbaijan. Thus, Azerbaijan’s potential in renewables could play a major role in the diversification of energy resources in Europe and in achieving its targets for reducing hydrocarbon emissions. By attracting large foreign investments in renewable energy projects, Azerbaijan will significantly strengthen the country’s economic potential, as well as ensure the energy security of its partners.