On June 4, Samir Akhundov, Chairman of the Board of the Azerbaijan Energy Regulatory Agency (AERA), participated in the plenary discussions titled “Electricity Generation and Grid Infrastructure Development: Powering Tomorrow’s World” at the 30th Anniversary Baku Energy Forum, held on June 3-4 at the Baku Convention Center as part of Baku Energy Week.
In his presentation, Mr. Akhundov provided comprehensive insights into the current challenges of transitioning to green energy in the power sector, global trends, and the future of energy infrastructure. He highlighted key aspects of Azerbaijan’s energy system, including installed capacities, electricity transmission infrastructure, energy export lines, set targets, as well as the importance of battery energy storage systems in integrating large-scale green energy into the grid, and discussed progress made in this area. Additionally, he spoke about the Energy Efficiency Fund, and addressed questions from forum participants.
Akhundov noted that Azerbaijan will allocate credits for three types of projects related to renewable energy: "This includes small, medium and large-scale projects. The amount for the smallest projects is 1,000 manats ($588). This is the starting point."
Regarding the largest project, the chairman noted that it will be 10 million manats ($5.88 million): "Ten million manats is the maximum amount for us. The grace period for it is 24 months. When looking at other projects, this is lower. We do this with the aim of allowing the customer to build their project and start using it."
He believes that 24 months is very good as a grace period. Regarding the interest rate, as noted by the head of the agency, a decision has not yet been made on this matter.
Celebrating its 30th anniversary this year, the Baku Energy Forum is an integral part of Baku Energy Week, held on June 2-4. The Forum has evolved into a key platform for strengthening international partnerships, sharing advanced practices, and facilitating the signing of agreements that have contributed not only to the development of Azerbaijan’s energy sector but also to the broader region. By convening energy leaders, business representatives, and government officials, the Forum plays a vital role in fostering global cooperation and shaping the future of the energy industry. The Baku Energy Forum is supported by the Ministry of Energy of the Republic of Azerbaijan.
