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Research on the impact of alternative and renewable energy sources on the country's energy sector and economic-mathematical assessment of their operational effıciency

2026 · SOCAR Proceedings · 0 citations

Abstract

The article explores the development directions of Azerbaijan’s electric power system, considering the efficient use of alternative energy sources and their impact on the environment. Increasing geopolitical instability, environmental challenges, and growing energy demand are strengthening the importance of energy security and require diversification of generation sources. In this regard, Azerbaijan is gradually adapting its national energy strategy to international trends by expanding the use of renewable energy sources and strengthening regional cooperation. Special attention is given to the strategic initiative aimed at creating the «Green Energy Corridor» Caspian–Black Sea–Europe, designed for the export of environmentally friendly electricity produced based on the wind potential of the Caspian Sea. This project contributes to the country’s integration into the international energy system and diversifies exports by reducing dependence on traditional oil and gas resources. The study analyzes statistical data on electricity generation in the country, including the growth dynamics of solar, wind, and hydropower production. According to estimates, Azerbaijan possesses significant technical potential for renewable energy both onshore and offshore, creating favorable conditions for large-scale green energy projects. The technological principles of wind, solar, and hydroelectric power plants are also discussed using simplified mathematical models describing their operational mechanisms. Additionally, the relationship between industrial production and economic growth is analyzed, confirming the strategic role of renewable energy development in reducing production costs and enhancing economic competitiveness. Overall, the results indicate substantial potential for sustainable development of the national energy system. Keywords: alternative energy sources; environment; electricity generation; renewable energy; hydropower; solar power; wind power.

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