Azerbaijan Renewable Energy Market Size (2024 - 2029)

The Azerbaijan Renewable Energy Market is projected to experience growth over the forecast period, driven by efforts to diversify the country's economy and reduce reliance on the oil and gas sector. The strategic focus on expanding the energy mix is expected to enhance energy security and create job opportunities, thereby promoting the renewable energy sector. Despite challenges such as limited international investment and project deployment delays, the market has recovered to pre-pandemic levels. The anticipated increase in the share of renewables in the energy mix presents significant opportunities for market participants.

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Market Size of Azerbaijan Renewable Energy Industry

Azerbaijan Renewable Energy Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 3.40 %
Market Concentration Medium

Major Players

Azerbaijan Renewable Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Renewable Energy in Azerbaijan Market Analysis

The Azerbaijan Renewable Energy Market size is estimated at 8.17 gigawatt in 2024, and is expected to reach 9.66 gigawatt by 2029, growing at a CAGR of 3.40% during the forecast period (2024-2029).

The market was negatively impacted by the outbreak of COVID-19 due to delays in ongoing and upcoming projects. Currently, the market has rebounded to pre-pandemic levels.

  • Factors such as diversifying the economy of the country and decreasing its dependence on the oil and gas sector are some of the key points in the country's Strategic Road Map on National Economic Perspectives, which is expected to drive the renewable energy market in Azerbaijan. Moreover, diversification of the energy mix offers multiple benefits, including job creation and energy security, further promulgating the renewable energy market in the country.
  • However, the lack of international companies' investments and the delay in the practical deployment of projects are expected to hinder the market's growth.
  • Azerbaijan's oil sector accounts for one-third of its economy, with exports of crude oil having a significant share. The country plans to generate additional revenue through crude oil exports, demanding a decrease in domestic consumption of oil and gas in the upcoming years. Therefore, renewables are expected to increase their share in the energy mix, further creating several opportunities for market players in the near future.

Renewable Energy in Azerbaijan Industry Segmentation

Renewable energy is the energy produced from the sources such as sun and wind that are present abundantly and do not run out. Renewable energy is commonly used for electricity generation, space and water heating and cooling, and transportation. Biomass, geothermal resources, sunlight, water, and wind are some of the energy sources that can convert to clean and usable energy.

The Azerbaijani renewable energy market is segmented by source type. The market is segmented by source type into solar, wind, hydro, and other types. For each segment, the market sizing and forecasts have been done based on installed capacity (gigawatts).

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Azerbaijan Renewable Energy Market Size Summary

The renewable energy market in Azerbaijan is poised for growth, driven by the country's strategic shift towards diversifying its economy and reducing reliance on the oil and gas sector. This transition is outlined in the Strategic Road Map on National Economic Perspectives, which aims to enhance energy security and create job opportunities through a diversified energy mix. Despite challenges such as limited international investment and project deployment delays, the market is rebounding to pre-pandemic levels. The government's focus on increasing the share of renewables in the energy mix is expected to create significant opportunities for market players, particularly in the hydropower and wind energy sectors. Hydropower, with its substantial installed capacity, remains a key component of Azerbaijan's renewable energy landscape, supported by ongoing and upcoming projects.

Technological advancements and increased research and development investments are anticipated to further propel the market's expansion. The State Strategy for the Use of Renewable and Alternative Energy Sources outlines critical guidelines for electricity generation from renewable sources, with significant attention on small hydro and wind power projects. Notable developments include the Khizi-Absheron wind farm, which is set to contribute significantly to the country's renewable energy goals. The government's commitment to raising the share of renewables in the overall energy production by 2030, alongside supportive policies and international collaborations, underscores the potential for growth in Azerbaijan's renewable energy sector. Key industry players, including ACWA Power International and Masdar, are actively involved in developing new projects, reinforcing the market's moderately consolidated nature.

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Azerbaijan Renewable Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Renewable Energy Installed Capacity and Forecast in GW, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION - By Source Type

    1. 2.1 Solar

    2. 2.2 Wind

    3. 2.3 Hydro

    4. 2.4 Other Source Types

Azerbaijan Renewable Energy Market Size FAQs

The Azerbaijan Renewable Energy Market size is expected to reach 8.17 gigawatt in 2024 and grow at a CAGR of 3.40% to reach 9.66 gigawatt by 2029.

In 2024, the Azerbaijan Renewable Energy Market size is expected to reach 8.17 gigawatt.

Renewable Energy Market in Azerbaijan Report Snapshots

Renewable Energy Market in Azerbaijan Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)