The surge in the use of renewable energy sources in Azerbaijan

Azerbaijan, known for its rich oil and gas reserves, is now making waves in the renewable energy sector, with a significant increase in solar and wind energy production observed in the first two months of 2024. As solar energy production surged six-fold, reaching 50.7 million kWh, and wind farms and solid waste incineration plants also saw notable increases in electricity generation, questions arise: Can this surge in renewable energy production lead to a reduction in electricity prices?

In January and February of 2024, Azerbaijan witnessed a remarkable increase in solar energy production, with output soaring to 50.7 million kWh, compared to a mere 8.4 million kWh in the same period last year. Furthermore, wind farms contributed 9.5 million kWh of electricity, while solid waste incineration plants generated 41.7 million kWh during the same timeframe. Contrasting these figures with the previous year's data, which stood at 9.1 million kWh from wind farms and 39 million kWh from other sources, the upward trend in renewable energy production is unmistakable.

Deputy and economist Vyugar Bayramov weighs in on the potential implications of this surge in renewable energy production. He notes that in many developed countries, communities and households harness energy from renewable sources such as wind and solar, utilizing it for their own consumption and selling surplus energy back to the grid. Bayramov suggests that implementing similar practices in Azerbaijan could result in citizens accessing cheaper energy while simultaneously boosting overall electricity production. He emphasizes the importance of establishing integrated infrastructure at the community level to facilitate such a transition.

The potential of renewable energy in Azerbaijan is substantial, with an estimated capacity of 27 thousand MW, predominantly in solar and wind power. Of this capacity, solar energy accounts for a significant portion, with 23 thousand MW, while wind power constitutes 3 thousand MW. Bayramov highlights that the geographical distribution of renewable energy resources in Azerbaijan favors widespread adoption, with areas like Baku, Absheron, and Khizi districts identified as particularly favorable for wind energy production.

The surge in renewable energy production not only presents an opportunity for Azerbaijan to diversify its energy mix but also holds the promise of reducing electricity prices for consumers. While challenges undoubtedly lie ahead, including the need for substantial investments in infrastructure and overcoming regulatory hurdles, the trajectory set by Azerbaijan in renewable energy production signifies a step towards sustainability and affordability in the country's energy sector.