FORMATION OF AN EFFECTIVE FOREIGN INVESTMENT ENVIRONMENT IN AZERBAIJAN: THE EXAMPLE OF RENEWABLE ENERGY

Abstract

This research looks at the potential and difficulties of adopting renewable energy sources (RES) in Azerbaijan in light of the nation's objectives for energy security. Azerbaijan, one of the world's suppliers of hydrocarbons, plans to use renewable energy sources for 20% of its electricity. Azerbaijan has implemented its Renewable electricity Strategy (RES) in compliance with sustainable development guidelines, all the while guaranteeing a steady flow of electricity. Since the 2000s, Azerbaijan has made large expenditures for the expansion of the renewable energy industry through the use of oil export revenue and the existing regulatory framework. This study looks at the obstacles that stand in the way of the nation's objective of obtaining 20% of its electricity from renewable energy sources and how close it is to reaching that target. This paper addresses the legal framework, environmental policies, and actual accomplishments as reported by the government when examining the nation's energy security and insecurity concerns. The focus is on Azerbaijan's energy policies in light of the July 2018 thermal power plant accident, which revealed numerous shortcomings in the country's energy policies. The paper assesses the chances that Azerbaijan's attempts to switch to renewable energy sources will be successful and offers solutions for the challenges the country faces. Keywords: Energy, formation, investment, Azerbaijan, renewable