SOCAR sets sights on unlocking Azerbaijan’s geothermal potential

Azerbaijan’s State Oil Company (SOCAR) is expanding its focus on renewable energy, with the development of geothermal resources emerging as a new strategic priority, particularly in the country’s liberated territories, SOCAR Vice President Afgan Isayev told the 31st Baku Energy Forum.

Isayev noted the company has already begun exploring geothermal energy opportunities in Kalbajar district, Caliber.Az reports per local media.

“We are exploring Kalbajar. We also express our deep gratitude to the Ministry of Energy for its support in this direction — for the development of the regulatory framework that promotes geothermal energy development, the creation of tariff mechanisms, the minimization of risks for foreign investors, and the introduction of additional de-risking tools. We have already started work in this direction,” he said.

Isayev noted that geothermal energy development has been incorporated into Azerbaijan’s socio-economic development program through 2030, expressing confidence in the sector’s future prospects.

“The development of geothermal energy is also included in the country's socio-economic development program until 2030. Therefore, we are very hopeful that in the near future we will be able to realize the potential that Azerbaijan has,” he added.

The SOCAR vice president also highlighted the company’s growing interest in international energy initiatives, particularly projects involving the export of electricity, which he described as part of the emerging “electron exchange” sector.

“We are eagerly awaiting the results of the feasibility studies (FS) and, of course, we are ready to participate in these initiatives. As is known, we operate in Georgia, Türkiye, and a number of other countries, and I am convinced that, relying on our resources and presence in these states, we will be able to effectively implement such projects,” Isayev said.

By Vafa Guliyeva