Promoting Development of Renewable Energy in Azerbaijan


sustain_energySustainable Energy Demonstration Site in Gobustan region of Azerbaijan

The Government of Azerbaijan has prioritized development of renewable energy as a strategic sector, and established the State Company on Alternative and Renewable Energy Sources (State Company AREA). State Company AREA collaborates with UNDP, the European Commission and the Government of Norway, to promote the development of sustainable energy in Azerbaijan that has traditionally been a significant oil and gas exporter.  Successful implementation of the project will contribute to the greening of the Azerbaijan’s economy and create enabling capacities for a gradual shift to low-carbon development model.

Project Goals

The project objectives are: (a) to support building of one small hydro-power plant in Sheki; (b) to assess the national-level potential for renewable power; (d) to identify which types of renewable power are most efficient, or economic with minimal subsidy; and (e) to identify the appropriate sites with optimal potential for sustainable power generation.

Project Accomplishments

  • Project experts drafted the Law on Renewable Energy in Azerbaijan.
  • The feasibility study for one small hydropower station was completed.
  • Project experts completed economic assessment of solar, wind and biomass projects in Azerbaijan and developed the financial model template.
  • Awareness-raising campaign on alternative energy was successfully completed.
  • Project finalized the pre-feasibility study of three pilot projects on solar, wind and biomass energy.


2011 - 2013


Amount of contribution, US$

European Commission

650,000 (500,000 Euro)



Delivery by years

Fiscal Year

Amount of disbursement, US$


385 743

2012 435 295

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