SOCAR Green, a subsidiary of the State Oil Company of Azerbaijan (SOCAR), plans to commission the country's first geothermal project by 2030, Elchin Targuluyev, a solar and wind energy specialist at SOCAR Green, said at the Azerbaijan & Central Asia Green Energy Week 2025.
Targuluyev noted that SOCAR Green is also working on non-variable sources-smaller but constant ones.
"For example, we are developing geothermal energy projects. They are currently in their first phase-pilot projects that require significant government support, as their cost (LCOE) is higher than current grid prices. We are discussing support, risk reduction, and cost reduction issues with the Ministry of Energy on a weekly basis. Our goal is to commission the first geothermal project in Azerbaijan by 2030," he said.
He added that the company is also developing bioenergy.
"There are already several projects: for example, a 37-megawatt waste incineration plant, which, however, is not directly related to bioenergy, as well as a number of smaller ones. But we want to implement a true bioenergy project – a power plant operating on multiple feedstocks, combined in a single location to generate heat and electricity. Such small projects will most likely be implemented through a B2B (business-to-business) model, rather than through government procurement, as there are many local consumers," stated Targuluyev.
According to the specialist, hybrid projects, which are more sustainable than single-source projects, will also begin to develop in the next five years. "With proper management, they will ensure stable generation, which is extremely important for the development of Azerbaijan's energy sector," he added.
