One of the key challenges facing SOCAR Green, a subsidiary of the State Oil Company of Azerbaijan (SOCAR), is optimizing the energy grid in Azerbaijan, General Director of SOCAR Green, Elmir Musayev, said on the second day of Baku Climate Action Week 2025 (BCAW2025).
The General Director highlighted that the issue is part of a broader global challenge: "One of the main obstacles we face in Azerbaijan's energy transition is grid optimization. We're working with grid operators and other institutions, as well as various partners, to exchange ideas on how to improve the system. When we talk about grid solutions, we mean mini-grids, decentralization, energy storage-including hydroaccumulation and battery storage systems-and various battery technologies. While lithium used to dominate the conversation, vanadium batteries are now gaining attention. That's why we are trying to make the grid more optimized and integrate more renewable energy into the system, rather than following technologies that can be applied in Azerbaijan."
Musayev identified financing as another major challenge: "We talk about financing because funding these projects is likely one of the most critical elements. Finance was also a key topic during COP29. But as a company and as a representative of the investment side, I believe more needs to be done-especially by international financial institutions (IFIs). Rather than making the process overly complex and bureaucratic, it should be more efficient and business-friendly."
He added that human capital development is also a top priority: "When we talk about human capital, it's probably our number one concern. It's not just about training engineers for future generations-it's about raising awareness across the industry. We all need to understand the importance of this issue. It's not just about technical, engineering, or financial knowledge; it's about grasping the significance of the topic so that everyone can take action. Because if we don't all move in this direction, achieving our targeted outcomes will be difficult and complicated."
Musayev noted that SOCAR Green now has a renewable energy portfolio totaling 1.7 gigawatts in capacity.
He explained that the company's original mandate was to support SOCAR's decarbonization efforts and contribute to Azerbaijan's broader energy transition initiatives: "We are not limiting our activities to SOCAR's decarbonization alone. We also collaborate with companies operating in other hard-to-abate industrial sectors," he said.
Musayev added that SOCAR Green aims to expand its partnerships beyond Azerbaijan's borders by working with a wide range of companies throughout the country and internationally.
