BAKU, Azerbaijan, September 3. Three offshore
wind energy projects with a capacity of 200 MW each are being
implemented in Azerbaijan, Director of Technology and Innovations
at SOCAR Green, Elchin Targuluyev, said during the online webinar
“Azerbaijan: infrastructure development, electromobility and
solutions for energy storage from renewable sources”, Trend's correspondent
reports.
According to him, an assessment of the wind resource has already
begun for one of the projects, and for the other two such work will
begin in the near future. These are pilot projects for larger-scale
development of offshore wind energy.
“The indicative estimate is around 6-7 GW of offshore wind power
by 2040.
The energy storage systems market in Azerbaijan is at the pilot
stage. Currently, two energy storage system projects developed by
the state grid operator are being implemented in Azerbaijan. As the
share of renewable energy sources increases, battery-based energy
storage systems are expected to increase significantly in the
coming years.
The Ministry of Energy of Azerbaijan is currently working on
developing a regulatory framework for battery-based energy storage
systems. Currently, such systems are primarily owned by grid
operators. The volume of battery storage systems commissioned
globally has increased significantly in recent years.
While 42 GW of such systems were commissioned in 2023, this
figure will reach 180 GW per year in 2025. By 2030, global demand
for energy storage systems will exceed 1,500 GW. Meanwhile, prices
for battery-based energy storage systems have fallen significantly
and are currently almost a third of 2020 levels.
Low cost, modular deployment, and a high share of renewable
energy are driving the rapid growth of battery storage systems,"
Targuluyev pointed out.
According to him, the bulk of electricity production in
Azerbaijan comes from thermal sources.
"In 2025, the share of thermal generation in the electricity
generation structure was 86.6%, while renewable energy sources
accounted for approximately 13%," he explained.
He noted that the majority of renewable generation comes from
hydropower, while the share of other renewable energy sources is
approximately 2.5%.
"This figure will increase each year as new renewable energy
facilities are commissioned. In 2025, Azerbaijan had one large
solar power plant in operation, while there were no large wind
farms. In January 2026, a 240 MW wind farm was commissioned.
Current plans call for increasing renewable energy capacity to 2.7
GW by 2030," he said.
Targuluyev also noted that energy storage systems can be used to
support the power grid, including for frequency regulation, power
backup, voltage support, and restoration of the power system after
a complete outage.
"Furthermore, storage systems can be used to shift renewable
energy generation to periods of increased demand. Currently, solar
energy generation peaks at midday, while demand peaks in the
evening. A storage system allows this generation to be shifted to
periods of higher demand," the director clarified.
According to him, battery systems can also help reduce the
constraints on renewable energy generation.
"Instead of limiting generation, surplus electricity can be
stored and used during periods of lower generation," he
mentioned.
Targuluyev also highlighted the importance of energy storage
systems for Azerbaijan's future green energy export corridors.
"These energy storage systems will be a crucial part of the
export corridors. The next stage of energy storage system
development in Azerbaijan envisions the creation of hybrid power
plants combining solar and wind generation with energy storage
systems.
To minimize the variability of renewable energy, we are
combining solar, wind, and energy storage systems to ensure the
most flexible mode and consistent generation," he noted.
Targuluyev also informed that in countries with spot markets and
open market-based electricity supply systems, battery systems can
provide ancillary services, including capacity support and other
system services.
He noted that storage systems can smooth out large-scale
renewable energy generation before it is transmitted to export
corridors, as well as provide flexibility for large consumers,
including green fuel, e-fuel, and hydrogen production projects.
Targuluyev pointed out the battery storage systems at the
Absheron and Yashma substations.
"Together, they have a capacity of 250 MW and a storage capacity
of 500 MWh. They can provide power for two hours," he said.
According to him, the main functions of these systems are to
ensure grid stability, regulate frequency, smooth out renewable
generation, manage peak loads, and restore the power grid.
Besides, Targuluyev noted that one of the most important
applications of energy storage systems in the coming years will be
green energy corridors.
"Storage systems can be used at generation centers to reduce
generation constraints, at interconnected interfaces to coordinate
production and consumption, and to provide backup power," the
company's official added.
He emphasized that to make energy storage services attractive to
investors, it is necessary to identify specific services, the
bodies responsible for management and dispatch, and payment
mechanisms.
According to him, potential services include ensuring capacity
availability, ancillary services, smoothing and shaping generation
profiles, as well as overload management and grid restoration.
