Economic Potential for the Development of Renewable Energy Sources in Azerbaijan

Abstract

Even though the oil and gas complex is a leading part of the Azerbaijani economy, other areas of the economy also influence the country's socio-economic development. In this case, renewable energy sources are no exception. Favorable natural conditions and the country's geographical location are among the factors for the effective use of this type of energy supply. In the current conditions, when the period of accelerated growth in oil and gas production in Azerbaijan has ended, the continuation of the most influential and productive development of the country should be provided based on the largescale application of an innovative method of managing available resources and the systematic introduction of incentive mechanisms that will ensure further progress towards innovation. For these purposes, it is of particular interest to the scientific study of the accumulated experience in the formation of organizational and economic development mechanisms in these industries, the implementation of appropriate generalizations in the realities of reforming the oil and gas industries, and the systematic improvement of mechanisms for ensuring sustainable development. The main goal of this study is to assess the economic potential of green energy development in Azerbaijan. The efficiency of this sector was also analyzed, and the hypothesis about the impact of market prices for gas and oil on the renewable energy supply was tested.