“Our experience with two solar energy projects over the past three years shows that we have been quite successful in terms of agreeing on and understanding the terms. Yes, regulations are in place, but there are also certain gaps in the procedures,” Deputy Chairperson of the Management Board of Azerbaijan Green Energy Company (AGEC) Khayala Naghiyeva said during a panel discussion held as part of the “German-Azerbaijani Strategic Partnership and Connectivity Conference 2026,” APA-Economics reports.
According to her, sometimes there is no clear procedure showing exactly how the process should be carried out, where it should begin and end, and what steps should be taken at each stage:
“From an investor’s perspective, this creates difficulties, and I think the public sector and the government should work on this issue. In other words, simply establishing regulations is not enough; mechanisms also need to be worked on. Investors also expect applicable mechanisms showing step by step how a project should be implemented and in what sequence permits should be obtained.
“During the first projects, of course, I understand that this was new both for the government and for local investors, who were largely learning by doing. But today, we have already gained certain experience and developed an understanding of how this process should proceed. We know who bears which risk, at what stage risks increase and how they should be mitigated.”
She noted that these matters now need to be documented and presented transparently and clearly to all parties involved in the process: “I think this should be the next step. As a company in the development stage, connectivity for us is not only a matter of gaining access to the market, customers or end users. For us, it is a matter of scaling up.
“The lack of both domestic and international and cross-border connections will seriously complicate the ability of investors operating in the renewable energy sector to expand their businesses. Although, as an investor, we want to invest in renewable energy and expand our portfolio, without energy buyers, appropriate and reliable power purchase agreements (PPAs), and demand, these investments will be of no benefit.
“These investments will not be attractive to investors, and their implementation will become more difficult. For this, we need energy buyers. Our market and region are limited. In this regard, connections, particularly cross-border connections, are very important for scaling up this business,” she emphasized.
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