Deputy minister: Azerbaijan's Karabakh may no longer need heating tariffs

Heating tariffs in Karabakh may soon become unnecessary, according to Azerbaijan’s Deputy Energy Minister, Elnur Soltanov.

Speaking at a public hearing in parliament, he said Karabakh has been declared a “green energy” zone, and big changes are happening in how energy is used there, Caliber.Az reports per local media.

“Karabakh is now a key part of our green energy plans,” he said. “A central heating system is essential for this – it’s cheaper, safer, and better for the environment.”

The government is also aiming for Karabakh to reach net-zero carbon emissions by 2050 – the first region in the country to set such a goal.

Soltanov emphasised that in the future, tariffs might not matter anymore. Local people could run their heating systems or choose to work with companies like Azəristiliktəchizat. “It will be up to the residents to decide,” he added.

As a reminder, Azerbaijan is actively transforming Karabakh into a green energy hub, leveraging its abundant renewable resources. The region's solar potential is estimated at 7,200 MW, with districts like Zangilan, Jabrayil, Gubadli, and Fuzuli receiving annual solar radiation levels of 1600–1700 kWh/m².

Wind energy prospects are also significant, particularly in the mountainous areas of Lachin and Kalbajar, where average wind speeds reach 7–8 m/s. 

Hydropower development is central to this initiative. Since 2020, 28 small hydropower plants totalling 226 MW have been constructed or rehabilitated, with plans to build 72 plants by 2030, aiming for a combined capacity of 467 MW.

Notably, the Khudafarin and Giz Galasi hydroelectric power stations on the Aras River, with a combined capacity of 140 MW, are slated for completion by 2025. 

International collaborations bolster these efforts. In June 2025, Azerbaijan and BP signed agreements to construct a 240 MW solar power plant in the Zangilan-Jabrayil zone, representing a $200 million investment.

Additionally, partnerships with companies like Japan's TEPSCO and Saudi Arabia's ACWA Power are advancing the region's renewable energy infrastructure. 

These projects not only aim to meet local energy demands sustainably but also contribute to Azerbaijan's broader goal of increasing its renewable energy share to 30% by 2030.

By Aghakazim Guliyev