Azerbaijan's SOCAR Green Shares Plans To Develop Battery Energy Storage Systems

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 3. Three offshore wind energy projects with a capacity of 200 MW each are being implemented in Azerbaijan, Director of Technology and Innovations at SOCAR Green, Elchin Targuluyev, said during the online webinar “Azerbaijan: infrastructure development, electromobility and solutions for energy storage from renewable sources”, Trend 's correspondent reports.

According to him, an assessment of the wind resource has already begun for one of the projects, and for the other two such work will begin in the near future. These are pilot projects for larger-scale development of offshore wind energy.

“The indicative estimate is around 6-7 GW of offshore wind power by 2040.

The energy storage systems market in Azerbaijan is at the pilot stage. Currently, two energy storage system projects developed by the state grid operator are being implemented in Azerbaijan. As the share of renewable energy sources increases, battery-based energy storage systems are expected to increase significantly in the coming years.

The Ministry of Energy of Azerbaijan is currently working on developing a regulatory framework for battery-based energy storage systems. Currently, such systems are primarily owned by grid operators. The volume of battery storage systems commissioned globally has increased significantly in recent years.

While 42 GW of such systems were commissioned in 2023, this figure will reach 180 GW per year in 2025. By 2030, global demand for energy storage systems will exceed 1,500 GW. Meanwhile, prices for battery-based energy storage systems have fallen significantly and are currently almost a third of 2020 levels.

Low cost, modular deployment, and a high share of renewable energy are driving the rapid growth of battery storage systems," Targuluyev pointed out.

According to him, the bulk of electricity production in Azerbaijan comes from thermal sources.

"In 2025, the share of thermal generation in the electricity generation structure was 86.6%, while renewable energy sources accounted for approximately 13%," he explained.

He noted that the majority of renewable generation comes from hydropower, while the share of other renewable energy sources is approximately 2.5%.

"This figure will increase each year as new renewable energy facilities are commissioned. In 2025, Azerbaijan had one large solar power plant in operation, while there were no large wind farms. In January 2026, a 240 MW wind farm was commissioned. Current plans call for increasing renewable energy capacity to 2.7 GW by 2030," he said.

Targuluyev also noted that energy storage systems can be used to support the power grid, including for frequency regulation, power backup, voltage support, and restoration of the power system after a complete outage.

"Furthermore, storage systems can be used to shift renewable energy generation to periods of increased demand. Currently, solar energy generation peaks at midday, while demand peaks in the evening. A storage system allows this generation to be shifted to periods of higher demand," the director clarified.

According to him, battery systems can also help reduce the constraints on renewable energy generation.

"Instead of limiting generation, surplus electricity can be stored and used during periods of lower generation," he mentioned.

Targuluyev also highlighted the importance of energy storage systems for Azerbaijan's future green energy export corridors.

"These energy storage systems will be a crucial part of the export corridors. The next stage of energy storage system development in Azerbaijan envisions the creation of hybrid power plants combining solar and wind generation with energy storage systems.

To minimize the variability of renewable energy, we are combining solar, wind, and energy storage systems to ensure the most flexible mode and consistent generation," he noted.

Targuluyev also informed that in countries with spot markets and open market-based electricity supply systems, battery systems can provide ancillary services, including capacity support and other system services.

He noted that storage systems can smooth out large-scale renewable energy generation before it is transmitted to export corridors, as well as provide flexibility for large consumers, including green fuel, e-fuel, and hydrogen production projects.

Targuluyev pointed out the battery storage systems at the Absheron and Yashma substations.

"Together, they have a capacity of 250 MW and a storage capacity of 500 MWh. They can provide power for two hours," he said.

According to him, the main functions of these systems are to ensure grid stability, regulate frequency, smooth out renewable generation, manage peak loads, and restore the power grid.

Besides, Targuluyev noted that one of the most important applications of energy storage systems in the coming years will be green energy corridors.

"Storage systems can be used at generation centers to reduce generation constraints, at interconnected interfaces to coordinate production and consumption, and to provide backup power," the company's official added.

He emphasized that to make energy storage services attractive to investors, it is necessary to identify specific services, the bodies responsible for management and dispatch, and payment mechanisms.

According to him, potential services include ensuring capacity availability, ancillary services, smoothing and shaping generation profiles, as well as overload management and grid restoration.

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