Abstract
Azerbaijan has a well-developed hydrocarbon industry backed with abundant domestic resources. Oil and gas have played a crucial role in the economic revival of the country since independence was regained back in 1991. The legal foundation of the transition to carbon-zero energy generation was laid in the 1990s with a number of acts mentioning the importance of the shift. The government has an ambitious plan to improve the situation, though an action plan with targeted renewables share in production and consumption is still to be prepared. This study, based on systematic review methodology for qualitative research, analyzes the potential of renewables in Azerbaijan with a focus on solar and wind power, discusses the deficiencies hindering the development of the renewables industry, and develops recommendations on applicable actions to improve the situation in this regard. It also includes legislative acts of the Republic concerning renewable energy. The main objective of the study is to explore renewable energy potentials and assess the readiness of the country to make a shift towards green energy. The findings of the article demonstrate enough potential to increase the share of renewables. The potential, however, is obscured with a relatively less solid legal framework and a lack of expertise in the industry.
Highlights
Renewable energy is no longer an unusual source but is an inevitable transformation path that has become a focal point for almost all countries around the world
The rationale of this review was to assess of the readiness of Azerbaijan to introduce an energy policy shift towards renewable energy with special emphasis placed on solar and wind energy
The shift to green energy production and reduction of carbon footprint in power generation is a universally accepted trend with the majority of countries reaching significant achievements, or at least submitting action plans with clear-cut targets to achieve. Azerbaijan grasped this trend in the late 2010s, since the 1990s, numerous legal acts had provisions on renewables
Summary
Renewable energy is no longer an unusual source but is an inevitable transformation path that has become a focal point for almost all countries around the world. The advantages of renewable sources over conventional energy sources have been debated and proved in many platforms up to now. The major pros of hydrocarbons—lower price—are vanishing at a high pace with the technological development pushing green energy prices lower. As per the latest figures, high-efficiency solar and wind-based generation undercuts even the cheapest fossil-based generation plants in terms of levelized cost of electricity (LCOE) in. According to the International Renewable Energy Agency (IRENA), wind and solar installation costs have seen up to an 81% decrease during 2010–2020, while the LCOE for those sources became cheaper by up to 85% (see Table 1). The share of renewables in global energy generation increased to 29% in
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