SOCAR identifies geothermal energy as a future growth sector for Azerbaijan

Azerbaijan’s state oil company SOCAR sees significant potential in geothermal energy, Vice-President Afghan Isayev said on September 9.

Speaking at a roundtable entitled “Baku Sustainable Business Development Assembly 2026”, held as part of Baku Climate Action Week 2026, Isayev said geothermal energy represented an opportunity for both SOCAR and the private sector, Caliber.Az reports.

“What I wanted to highlight, and where we see an opportunity not only for us but also for the private sector, is geothermal energy. It is considerably more risky. Geothermal energy is not only for district heating purposes, but also for electricity generation,” he said.

Isayev said SOCAR had held successful discussions with Azerbaijan’s Ministry of Energy on developing the sector.

“The Minister of Energy has included this in the state programme with the aim of developing new legislation and instruments that will help reduce risks in this particular sector, which is essentially a future sector for us,” he said.

SOCAR, together with Schlumberger and Baker Hughes, has also conducted studies identifying areas in Azerbaijan with significant potential for geothermal development, Isayev said.

The company is now seeking an equity partner willing to share the risks involved in such projects.

“A partner who knows how to develop such projects, because we do not have that experience, and we are saying this absolutely honestly,” Isayev said.

He added that government efforts on legislation and risk mitigation, combined with technical support and international expertise, could accelerate the development of the sector.