Integration of Renewable Energy Sources to Power
Grid in Azerbaijan: A Review
1st Tural Aliyev 2nd Nihad Zalov
Department of Electrical and Department of Electrical and
Computer Engineering Computer Engineering
The George Washington The George Washington
University University
Washington DC, USA Washington DC, USA
aliyevt@gwu.edu nzalov92@gwu.edu
Abstract—Azerbaijan, a country rich in oil and gas reserves,
has traditionally relied on conventional fossil fuels for its energy
needs. However, with increasing global concerns over climate
change and the need to diversify energy sources, Azerbaijan has
recognized the potential of renewable energy and has embarked
on a journey to integrate it into its power grid. The intermittent
nature of renewable sources poses technical and regulatory chal-
lenges, requiring advanced grid management and energy storage
systems. By implementing favourable policies and overcoming
technical barriers, Azerbaijan can achieve energy security, reduce
emissions, and contribute to a sustainable future.
I. I NTRODUCTION
The forthcoming decades are projected to experience a
substantial reduction in the availability of traditional energy
sources. This outcome can be attributed to two main fac-
tors: the steady growth of the global population and the
expanding reliance on exhaustible energy sources, specifically
hydrocarbon reserves. The integration of renewable energy
sources into the power grid is a critical step towards achieving
a sustainable and environmentally friendly energy system.
As the world moves towards reducing dependence on fossil
fuels and mitigating climate change, countries worldwide are
exploring the potential of renewable energy technologies. The
top five countries in terms of the amount of energy derived
from renewable resources are China, the United States, Brazil,
Germany, and Canada. These nations have made significant
strides in harnessing renewable energy to meet their energy
demands and reduce reliance on fossil fuels. Azerbaijan also
stands as a nation with considerable prospects for harnessing
renewable energy sources. The technical capacity for renew-
able energy sources within Azerbaijan is estimated at 135
GW on land and 157 GW at sea. In terms of economic
potential, renewable energy sources are projected to reach 27
GW, encompassing 3,000 MW of wind energy, 23,000 MW
of solar energy, 380 MW of bioenergy potential, and 520 MW
of mountain river potential [1]. Despite Azerbaijan’s substan-
tial wealth of energy resources and its status as a notable
global energy exporter, the utilization of renewable energy
sources has remained a prominent focus. Under the control
of Azerbaijan’s government, the energy security policy has
3rd Ilgar Guliyev
Department of Electrical and
Computer Engineering
The George Washington
University
Washington DC, USA
guliyev ilgar@gwu.edu
prioritized strengthening renewable energy deployment within
the country. The primary objective is to diversify the energy
mix and foster sustainability, positioning renewable energy
sources as a fundamental pillar of Azerbaijan’s energy sector.
This review aims to provide an overview of the current status,
challenges, and opportunities associated with the integration of
renewable energy sources into the power grid in Azerbaijan.
Understanding the experiences and lessons learned from other
countries can serve as a valuable reference point in formulating
effective strategies and policies to accelerate the transition
towards a sustainable energy future in Azerbaijan.
II. G ENERAL S TATUS OF R ENEWABLE E NERGY
In alignment with the socio-economic development priori-
ties of the Republic of Azerbaijan, increasing emphasis is be-
ing placed on the utilization of renewable energy sources and
the widespread adoption of environmentally friendly technolo-
gies in both the present and the future. To facilitate progress
in this realm, comprehensive surveys have been conducted
nationwide to identify and prioritize areas with significant
potential for renewable energy sources. Additionally, national
priorities play a pivotal role in fulfilling the commitments
outlined in the United Nations ”Transforming Our World:
The 2030 Agenda for Sustainable Development.” These ini-
tiatives underscore the country’s dedication to sustainable
development and the attainment of long-term socio-economic
objectives. Azerbaijan has a total power generation capacity
of 7954 MW. Within this capacity, renewable energy power
plants, including large hydropower installations, contribute
1312 MW, accounting for approximately 16.5 per cent of
the overall capacity. This demonstrates a significant portion
of the ’s energy mix is derived from renewable sources. The
integration of renewable energy aligns with Azerbaijan’s com-
mitment to diversify its energy sources and reduce reliance on
conventional fossil fuels. By incorporating renewable energy
into its power sector, Azerbaijan strives to promote sustain-
able development and align with global initiatives aimed at
achieving a cleaner and more sustainable energy future.

Fig. 1. Global Horizontal Irradiation map of Azerbaijan
Fig. 2. Mean Wind Speed at 100-m Altitude
A. Current Status of Renewable Energy
In Azerbaijan, the hydropower capacity is reported to be
1159.2 MW, distributed across 30 stations, including 20 small
hydropower stations. The wind energy capacity amounts to
66.1 MW, generated by 8 stations, with 2 of them being hybrid
installations. The bioenergy capacity is 37.7 MW, derived from
2 stations, including 1 hybrid plant. Solar energy capacity
totals 51.9 MW, generated by 12 stations, with 2 of them being
hybrid facilities. Two hybrid power plants, namely Gobustan
and Julfa, have installed wind capacity of 2.81 MW, solar
capacity of 3.8 MW, and bioenergy capacity of 0.7 MW.
Furthermore, in the Nakhchivan Autonomous Republic,
solar power plants operate with a combined capacity of 39
MW. Overall, the installed capacity for renewable energy pro-
duction, considering both large hydropower plants and other
renewable sources, reached 201.4 MW in 2022. This accounts
for approximately 2.5 per cent of the total electricity produc-
tion capacity in Azerbaijan. The following table highlights the
growing presence and contribution of hydropower plants as re-
newable energy sources within the country’s energy sector [2].
During the year 2022, the electricity generation in the republic
TABLE I
H YDRO P OWER P LANTS IN A ZERBAIJAN
Hydro Power Plants Small Hydro Power Plants
Mingachevir HPP−402 MW Gulabird SHPP−7.5 MW
Shamkir HPP−380 MW Oghuz SHPP 1,2,3−3.6 MW
Yenikend HPP−150 MW Goychay SHPP−3.1 MW
Fuzuli HPP−25 MW Ismayıllı-1 SHPP−1.6 MW
Takhtakorpu HPP−25 MW Ismayıllı-2 SHPP−1.6 MW
Shamkirchay HPP−25 MW Balaken-1 SHPP−1.5 MW
Varvara HPP−16.5 MW Gusar SHPP−1 MW
Araz HPP−44 MW Vaykhır HPP−5 MW
Bilev HPP−22 MW
Arpachay 1, Arpachay 2−21.9 MW
Ordubad HPP−36 MW
reached a total of 28.9 billion kWh. Within this timeframe,
hydroelectric power plants (HPPs) contributed 1595.7 million
kWh to the overall electricity production, while other sources
such as thermal power plants, geothermal energy, and biomass
plants accounted for 349.5 million kWh. Wind power plants
generated 83.3 million kWh of electricity throughout the year,
while solar power stations produced 60.9 million kWh. Addi-
tionally, the solid household waste incineration plant generated
205.3 million kWh of electricity. The electricity generated
from renewable energy sources constituted approximately 7
per cent of the total electricity production. The State Agency
for Alternative and Renewable Energy (SAARE) in Azerbaijan
has successfully implemented and developed several wind and
solar farm projects. According to the 2014 report issued by
SAARE, a total of 12 wind plants were included, collectively
possessing an installed capacity of 402.94 MW. These projects
represent a significant contribution to the renewable energy
sector in Azerbaijan, highlighting the country’s commitment
to expanding its wind energy infrastructure and harnessing
the potential of clean and sustainable power source.n the
2018 presentation by the Ministry of Energy, a vision was
outlined for the establishment and advancement of six wind
plants. This forward-looking plan demonstrated the strategic
intent of the Ministry to promote the growth of wind energy
generation in Azerbaijan. By envisioning the development
of these wind plants, the Ministry aimed to tap into the
country’s wind resources and further diversify the renewable
energy portfolio. Such initiatives highlight the government’s
commitment to sustainable energy development and the re-
alization of a greener and more resilient energy sector. As
reported by the Ministry of Energy of Azerbaijan in 2020,
the cumulative installed solar capacity amounted to 40 MW,
distributed among 11 solar plants. This signifies the progress
made in expanding solar energy infrastructure within the coun-
try. This achievement reflects the government’s commitment
 TABLE II holding renewable energy auctions in Azerbaijan” project is
L IST OF I NSTALLED AND E NVISAGED W IND P OWER P LANTS (WPP S ) IN being executed in collaboration with the European Bank for
A ZERBAIJAN IN 2014
Reconstruction and Development (EBRD). This initiative aims
Name of the WPP Output Capacity (MW) to establish auction rules, conditions, and documentation for
Gobustan 2.7 the procurement and sale of electricity, including qualification
Shurabad −1 15
Shurabad −2 25 requirements and request for proposals documents.
Pirakushkul −1 60
The ongoing implementation of this project demonstrates
Pirakushkul −2 150
Shurabad −3 33 Azerbaijan’s commitment to advancing renewable energy de-
Sitalchay 25 ployment, facilitating private sector participation, and ensur-
Khizi 3.6 ing transparent and competitive processes in the renewable
Mushfig 9
Pirallahi Wind Park 15
energy market. These actions reflect the country’s dedication
New Yashma 50 to sustainable energy development and the achievement of
Ecological Park 0.04 its renewable energy targets. In accordance with the Paris
Clean City 9.6 Agreement, which was adopted during the 21st Conference of
Samukh Agro-Energy Complex 5
TOTAL 402.94 the Parties on December 12, 2015, the Republic of Azerbaijan
has submitted its nationally determined contributions (NDCs)
to the Convention Secretariat. In line with global efforts to ad-
dress the impacts of climate change, Azerbaijan has committed
to promoting solar power generation as a key component of to a specific target of reducing greenhouse gas emissions by
its energy diversification strategy. 35 per cent by the year 2030, relative to the base year of 1990.
This demonstrates the country’s dedication to contributing to
TABLE III international initiatives aimed at mitigating climate change
L IST OF I NSTALLED S OLAR P OWER P LANTS (SPP S ) IN A ZERBAIJAN IN
2018 and aligning with the global objective of limiting global
temperature rise to well below 2 degrees Celsius. During
Name of the SPP Capacity (MW) the COP26 Conference held in Glasgow in November 2021,
Surakhani 1.7
Sumgait 1.8 Azerbaijan made a new commitment to reduce emissions by 40
Pirallahi −1 2.2 per cent by the year 2050. Additionally, the country pledged to
Pirallahi −2 7.2 establish a ”net zero emission” zone in the territories that have
Samukh −1 0.4
Samukh −2 7.2
been liberated from occupation. To accomplish these ambitious
Gobustan HES (solar component) 5.0 goals, the Ministry of Energy has set a primary objective of
Khizi-2 HES (solar component) 10.0 increasing the proportion of renewable energy investments in
Absheron HES (solar component) 10.0 the country’s overall energy balance to 30 per cent by 2030.
Siyazan 4.5
TOTAL 50 To achieve this target, Azerbaijan has planned the cre-
ation of approximately 1500 MW of new generation capac-
ities through the use of Build-Operate-Own-Transfer (BOOT)
models. These new capacities will be predominantly based
B. Future Vision on renewable energy sources, contributing to the reduction
Extensive efforts are underway to assess the potential for of greenhouse gas emissions and promoting a sustainable
electricity production from renewable energy sources in Azer- energy transition. By focusing on renewable energy expansion,
baijan and determine the necessary steps and measures for Azerbaijan aims to diversify its energy mix and enhance the
harnessing this potential. To identify and prioritize areas with resilience of its energy sector while aligning with global
renewable energy potential, eight specific locations have been efforts to combat climate change. On January 9, 2020, the
selected for evaluation. In alignment with this, pilot projects Ministry of Energy of the Republic of Azerbaijan entered into
are already underway in three of these areas, demonstrating a executive agreements with ”ACWA Power” of Saudi Arabia
proactive approach towards implementation. and ”Masdar” of the United Arab Emirates, pertaining to the
implementation of pilot projects focused on renewable energy.
While wind energy projects are being pursued, there is also These agreements were formalized within the premises of
a strategic focus on leveraging the country’s extensive solar the Cabinet of Ministers. In compliance with the stipulations
energy potential. Future plans involve the implementation of set forth in the aforementioned agreements, pilot projects
solar energy projects throughout various regions, utilizing non- involving the establishment of wind power plants with a total
arable land and strategically distributing electricity generation capacity of 240 MW by ”ACWA Power,” as well as solar
capacities across renewable energy sources. power plants with a combined capacity of 230 MW by the
A dedicated focus is being placed on investment in identified ”Masdar” company, have been envisaged. On January 13,
areas with significant renewable energy potential through 2022, the groundbreaking ceremony of the 240 MW ”Khizi-
a competitive auction process. Currently, the ”Support for Absheron” Wind Power Plant, and on March 15, 2022, the
230 MW ”Garadagh” Solar Power Plant was held [3]. On June
1, 2023, the Ministry of Energy of Azerbaijan and the Chi-
nese company ”China Gezhouba Group Overseas Investment”
signed a Memorandum of Understanding (MoU) to facili-
tate the realization of large-scale renewable energy initiatives
amounting to 2 GW within Azerbaijan. The MoU encompasses
collaborative efforts to evaluate the viability of investment
opportunities in diverse sectors, including industrial-scale solar
energy, both onshore and offshore wind energy, energy storage
systems, integrated smart energy systems, and green hydrogen
production projects. Additionally, the document outlines the
company’s responsibilities in conducting assessments related
to network connectivity, environmental impact, and geological
and topographic surveys pertinent to the proposed projects.
During the ”Baku Energy Week” held in the Autonomous
Republic of Nakhchivan, a special session titled ”Green energy
potential of Nakhchivan and Eastern Zangezur” took place
on June 3, 2023. Within this session, the Ministry of Energy
and ”Nobel Energy Management” disclosed their plans for the
establishment and operation of a 400 MW solar power plant in
the Autonomous Republic of Nakhchivan. In addition, memo-
randums of understanding were formalized with TotalEnergies,
encompassing collaborative efforts regarding the exportation
of electricity to the Republic of Turkey. Further collaboration
was agreed upon for the development of a 250 MW onshore
wind power project, a 250 MW solar power plant project, and
the assessment and implementation of energy storage systems
projects, all within the Nakhchivan Autonomous Republic [4].
III. C HALLENGES
The growing adoption of Renewable Energy Sources (RES)
and the intermittent nature of the power they generate pose
challenges related to stability, reliability, and power quality
in the primary electrical grid [5]. Presently, the integration
of renewable energy systems into the grid is predominantly
carried out at the low voltage (LV) distribution level, while
the possibility of grid integration can also extend to the
transmission level for larger capacity systems. The choice
of integration level depends on the generation capacity of
renewable energy sources. This is represented in Fig.3. Further,
these challenges can be broadly categorized into two groups:
technical challenges and non-technical challenges. At the
following sub−topics the issues will be clarified.
Fig. 3. Grid connected distributed resources
A. Power Quality
The quality of electric power encompasses various pa-
rameters, including continuity of service, voltage amplitude
and frequency variations, transient voltages and currents, and
harmonic content. These parameters collectively define the
characteristics and reliability of the supplied electric power
[6]. The power quality problem is generally defined as any
deviation in the magnitude, frequency, or waveform shape
of voltage and current that leads to failures or malfunctions
in customer equipment. In other words, it refers to any
abnormality in the electrical supply that adversely affects the
performance or operation of electrical devices and systems.
PV systems encounter power quality (PQ) issues stemming
from fluctuations in solar radiation, cloud shadows, and the
non-linear behaviour of power electronic components such as
inverters and filters.
On the other hand, wind turbines face PQ problems arising
from variations in wind speed, tower shadows, yaw errors
caused by a misalignment between the wind direction and
turbine facing direction, and the operation of power electronics
devices. These factors contribute to PQ challenges specific to
PV and wind systems [7]. Power quality-related phenomena
can be classified into two main groups. The first group
comprises phenomena arising from the fluctuating nature of
energy resources. These fluctuations can directly impact the
quality of power generated by renewable energy systems.
The second group encompasses phenomena resulting from the
interaction between power electronic interfaces and the power
system [8]. Power quality (PQ) issues arising from fluctuating
energy resources include:
• Over voltage during feed−in
• Long and short term voltage fluctuations
• Unbalance
• Frequency deviation
PQ issues arising from the power electronics interface in
renewable energy systems include:
• Harmonic injection
• Resonance phenomena
• Inrush currents
• Decreased damping of the grid due to non−linearities
Most commonly, power quality issues for renewable energy
integration refer to voltage and frequency fluctuations and
harmonics. In a power system, voltage variations are primarily
influenced by the flow of reactive power, while frequency
variations are determined by the rate of change in real power
flow. To mitigate voltage and frequency fluctuations, control
measures can be implemented [9]. Renewable energy gener-
ation utilizing power electronic converters or inverters often
leads to the generation of harmonics. To address this issue,
researchers have investigated and proposed various methods
for harmonics mitigation and compensation [10]. Active power
filters have been extensively researched and implemented as

Fig. 4. Caption
an effective solution for harmonic reduction [11].
B. Forecasting
Indeed, forecasting plays a crucial role in power systems,
particularly in grid system planning, to ensure stability and
high reliability. In the context of renewable energy technolo-
gies, accurate power generation forecasting becomes challeng-
ing due to their dependency on weather and environmental
factors. The inherent variability and intermittency of renewable
energy sources make it difficult to precisely predict their power
output.
Accurate load forecasting is generally achieved in power
system distribution, which contributes to the smooth operation
of the system by ensuring a constant and reliable power
supply that meets future load demands. However, in the
case of renewable energy technologies, forecasting studies are
essential for power generation rather than load forecasting.
Since the primary source of power from renewables is often
variable and uncontrollable, integrating renewable energy into
the grid becomes more complex.
The accuracy of power generation forecasts becomes crucial
for managing and optimizing the integration of renewable
energy sources into the grid. Advanced forecasting techniques,
such as weather forecasting models combined with historical
data analysis, machine learning algorithms, and advanced data
analytics, are employed to improve the accuracy of power
generation forecasts. By enhancing the precision of these
forecasts, grid operators can better anticipate and manage
the fluctuations in renewable energy generation, leading to
more efficient and reliable integration of renewable energy into
the grid system. Additionally, Indeed, each renewable energy
technology possesses unique characteristics, which necessitate
specific forecast studies and research approaches [12].
C. Network Voltage Variation
The operation of distribution systems is impacted by the
presence of unbalanced voltages. At the distribution level, both
loads and renewable generators can be either three-phase or
single-phase. When a single-phase source, such as a small PV
system, is interconnected, it can contribute to an increase in
system imbalance. Additionally, inherently unbalanced distri-
bution systems can create challenges for three-phase renewable
energy sources that are connected to them. The resulting
unbalanced currents in the generators can lead to issues such
as overheating and frequent shutdowns. The increase in feeder
voltage is influenced by the X/R ratio of the line. In the case
of high-voltage (HV) transmission lines, the X/R ratio tends
to be higher, indicating that the reactance (X) significantly
exceeds the resistance (R) due to the geometric properties
and low resistance of the conductors. On the other hand,
distribution feeders are characterized by relatively low X/R
values, meaning that the resistance (R) is comparable to the
reactance (X).
To illustrate this, consider a 400 kV line with an X/R ratio
of 16, while an 11 kV line typically has an X/R ratio of 1.5.
The X/R ratio reflects the relationship between the reactance
and resistance in the line [13].
Figure 4 depicts the voltage profile of a distribution system,
showcasing the differences in voltage with and without the
presence of distributed generation (DG). This figure provides
a visual representation of how the voltage profile is affected
by the integration of DG into the distribution system.
Fig. 5. Grid connected distributed resources
D. Reactive Power Compensation Capability
Voltage instability in an electric network can be attributed to
unbalance in reactive power (VAR), resulting in voltage drops
across buses and lines. In the case of wind turbines equipped
with induction generators, specifically, Type-A (fixed speed)
and Type-B (limited variable speed) turbines, the provision
of reactive power support becomes necessary. These turbines
consume a significant amount of reactive power, approximately
35−40 per cent of the rated active power at no load and around
60 per cent at full load [14].
To address the VAR requirements of these wind turbines,
capacitor banks are commonly utilized for compensating the
reactive power. However, it’s important to note that Type-A
and Type-B wind turbines do not actively participate in system
voltage control. Instead, they rely on external reactive power
support, such as capacitor banks, to ensure the required VAR
is supplied [15].
E. Variation of Power Generation and Speed
The varying levels of power generation from renewable
energy (RE) technologies present another challenge for RE-
grid integration. Small fluctuations in power output may not
cause significant issues. However, when the magnitude of
power output fluctuations becomes substantial, it becomes
necessary to address specific requirements and considerations.
Large fluctuations in power output from RE sources can
introduce instability and reliability concerns in the grid. These
fluctuations can potentially affect the overall grid performance
and cause disruptions to the power supply. Another challenge
specific to solar energy is the variation in power production
throughout the day. The amount of power generated by solar
systems is not constant and can vary significantly depending
on the time of day. The highest power output typically occurs
around noon when the sun is at its peak position, while the
power output is lower in the morning and afternoon. This
variation in solar power production can have implications for
grid stability and load management [16]. An extra aspect to
consider in the integration of renewable energy (RE) into
the grid is the speed of power output fluctuations. These
fluctuations can occur at various timescales, ranging from hour
to hour, minute to minute, or even second to second.
F. Cost Issue
It is indeed evident that encountering these challenges
can have economic implications. The accurate prediction of
power generation is crucial for effective power generation
forecasting, which, in turn, relies on the precision of power
generation estimations. The reliability of these estimations
impacts the overall economic planning and management of
the power system.
Furthermore, the location of large-scale renewable energy
plants often necessitates long-distance power transmission to
connect them with cities and grid substations. This extended
transmission involves the use of high-voltage transmission
lines, which can incur additional costs. The distance and volt-
age level of transmission lines influences the overall expenses
associated with transferring power from renewable energy
plants to consumption centers.
Considering these factors, addressing power generation
uncertainties and optimizing the location and transmission
infrastructure of renewable energy plants become significant
for minimizing economic costs and ensuring efficient energy
supply.
IV. P OTENTIAL S OLUTIONS TO A DDRESS R ENEWABLE
E NERGY C HALLENGES
The primary factor in choosing a specific approach is the
cost-effectiveness of the technology and its compatibility with
the network’s characteristics. Elements such as grid infrastruc-
ture, operational procedures, generation types, and regulatory
considerations influence the most economically and practically
feasible solutions. Typically, systems require enhanced flex-
ibility to accommodate the increased variability introduced
by renewable energy sources. This flexibility can be achieved
through improved forecasting methods, optimized operational
practices, the integration of energy storage systems, the uti-
lization of demand-side flexibility, the deployment of flexible
generators, and other mechanisms [17]. In Azerbaijan, the
Independent System Operator, AzerEnergy, is working towards
integrating renewable energy sources with conventional power
plants through a hybrid system. By doing so, the hybrid system
aims to leverage the benefits of both types of generation,
ensuring a more reliable and sustainable power supply for the
country [18].
−Forecasting of wind and solar resources: By employing
forecasting techniques, grid operators can make informed
decisions regarding the commitment of units in response to
changes in wind and photovoltaic (PV) generation.
−Wind-PV hybrid systems: By combining wind and solar
PV in a hybrid system, the overall power output becomes
more balanced and less susceptible to extreme fluctuations.
This helps to improve the overall reliability and stability of
the power supply.
−Load Conditioning: This approach makes sure that the
linked equipment is less sensitive to power supply disruptions,
enabling functioning even with substantial voltage aberrations.
−Energy Storage: This allows excess energy generated dur-
ing periods of high renewable generation to be stored and used
during times of low generation or high demand. By capturing
and storing this surplus energy, energy storage systems help
balance supply and demand, ensuring more efficient utilization
of renewable resources and reducing the need for curtailment
[19].
V. C ONCLUSION
To sum up, increased environmental awareness and energy
security concerns have propelled renewable energy systems to
the top of power generation programs in Azerbaijan. However,
in the integration process to achieve the target, certain diffi-
culties have been raised. This paper has addressed the actual
challenges that can be faced in the industry and given possible
solutions. The interconnection of renewable energy generation
at the distribution level poses significant issues pertaining to
voltage control, power quality, and protection.
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