BAKU, Azerbaijan, September 7. Integration of 2 GW of green energy into the grid in Azerbaijan requires new solutions, General Director of SOCAR Green, Elmir Musayev, said during a discussion within the framework of the Baku Climate Action Week 2026 (BCAW 2026), Trend's correspondent reports from the event.

Musayev explained that the expansion of renewable energy projects in Azerbaijan will create an additional burden on the electricity grid, and new technological solutions and partnerships are needed to reduce this burden.

According to him, the first projects of SOCAR Green in Azerbaijan were implemented with the participation of the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB), which are not part of the World Bank Group, but are international development finance institutions.

"This was the first wave of projects in Azerbaijan, and there were many uncertainties. However, in this regard, those projects became very valuable experience and know-how for us, because they were quite difficult," said Musayev.

The General Director also made a special mention of the Jabrayil Solar Power Plant - Shafag project, in which SOCAR Green is an active investor. According to him, one of the main features of the project, developed by Lightsource bp, a wholly owned subsidiary of bp, is the implementation of the virtual power purchase agreement (VPPA) mechanism.

"The advantage of this project is that it not only produces renewable and clean energy, but also serves the decarbonization of oil and gas facilities. The Sangachal terminal is the main energy recipient of this project," Musayev said.

He noted that this mechanism, which was applied for the first time in Azerbaijan, has created new opportunities for future projects.

"This was a new solution in Azerbaijan and, I would say, as the first such project, it paved the way for us to consider further projects within the framework of the same mechanism," the company's head emphasized.

According to Musayev, SOCAR Green later signed a framework agreement on cooperation and partnership with the State Water Resources Agency, the largest electricity consumer in Azerbaijan.

"The mechanism that we agreed on within the framework of the decarbonization of their facilities is based on the repetition of the VPPA model. This is a very good mechanism for business-to-business (B2B) solutions in Azerbaijan," he pointed out.

The company's chief said that the company's technological innovations are more related to the introduction of existing technologies to Azerbaijan than to the production of new equipment. In this context, Musayev emphasized that in complex conditions, more unique solutions are needed.

"We aren't a manufacturing company. Therefore, our technological innovation will be related to supporting the introduction of these technologies to Azerbaijan rather than developing new technologies to increase the efficiency of wind turbines or solar panels," he said.

Musayev noted that Azerbaijan is already leaving behind the stage of "easy results" in the development of renewable energy.

"We started with easy results. The volume of intermittent energy production in Azerbaijan was very low, and the grid was not under serious pressure at that stage. Therefore, it was easier to get approval for the first projects," he said.

According to him, the integration of 2 GW of renewable energy into the system by 2027 will create additional pressure on the electricity grid at the next stage.

"Now the next stage will bring additional load to the network. The government, the Ministry of Energy, and Azerenergy are already conducting studies with consultants on how to optimize and modernize the network," Musayev said.

He added that the goal of companies should also be to minimize the load on the network.

"At the level of companies, we must reduce this load so that the process is not so difficult for them. Without partnerships, it will be difficult to develop such solutions. The main thing we are trying to do in Azerbaijan is the exchange of knowledge, technology, and ideas," the CEO of SOCAR Green emphasized.

Musayev said that the company is cooperating with American, Chinese, and Middle Eastern companies in this direction.

He mentioned Masdar's project for uninterrupted power supply (RTC) in Uzbekistan as an example, as well as ACWA Power's off-grid RTC project in the Red Sea.

"Companies are implementing these projects. Why not cooperate with them and find the optimal solution for Azerbaijan? How can we minimize or even eliminate the load on the network?" Musayev said.

The Director General noted that they are also studying the prospects of new technologies such as green hydrogen for Azerbaijan.

"We have conducted a lot of analysis on green hydrogen together with our partners; we see and understand the difficulties. The next step is not to simply abandon this issue, but to think about how we can solve the problems. Perhaps the derivatives of green hydrogen will be a more favorable option for Azerbaijan," he noted.

Musayev also indicated geothermal energy as one of the directions that can be developed in Azerbaijan.

"Azerbaijan has never been a country of geothermal energy. However, this doesn't mean that it's impossible in Azerbaijan. For this, it is necessary to determine the right approach. We don't have experience in this area in Azerbaijan, because there has been no need for it so far. Therefore, we need to cooperate with leading companies," he emphasized.

According to Musayev, cooperation should not be limited only to investors and technology companies.

"It's not enough to partner with other investors or technology providers. It's also important to build partnerships with international financial institutions that advise governments and work with many countries," he said.

The company's head also noted the importance of cooperation with other platforms. According to him, SOCAR Green has established good relations with SETClean and plans to provide mutual support.

The fourth Climate Week (CW4) of the UN Framework Convention on Climate Change is being held in Baku through September 11, hosted by the Republic of Azerbaijan and organized by the Azerbaijani Ministry of Foreign Affairs.

Baku, which has become an important international platform for the climate agenda, is hosting discussions on the practical implementation of climate decisions, the expansion of international cooperation, and further strengthening global climate action ahead of COP31.

Representatives of governments and international organizations, experts, financial institutions, the private sector, and civil society from various countries are expected to attend the events.

Baku Climate Week is designed as an international platform for discussions on combating climate change, the energy transition, renewable energy, sustainable development, and accelerating climate action.

The events will further strengthen Baku’s active role in the global climate agenda and make an important contribution to strengthening international climate cooperation ahead of COP31.