Within the framework of cooperation between the Ministry of Energy of the Republic of Azerbaijan and the German Energy Agency (dena), the project "Cooperation between the Ministry of Energy of the Republic of Azerbaijan and dena in Promotion of decentralized energy supply proposing selected renewable energy application areas for the Republic of Azerbaijan" was implemented. A consulting company has been identified by dena for the project.

The main objective of the project is to support the Ministry of Energy in the implementation of renewable energy framework conditions for the development of the renewable energy market in Azerbaijan.

Various application areas were identified by studying the perspectives of identified stakeholders and analyzing the market potential through interviews and surveys to support the development of decentralized renewable energy in Azerbaijan.

Different pilot project proposals on application of Solar PV-powered water pumps for sub-artesian wells, Mobile PV+Battery power system, Combined solar PV and heat pump system for greenhouses, Biomass energy for heat in buildings were put forward within the project. Technical and economic analysis, implementation strategy and stakeholders on the pilot project proposals were identified and general recommendations were developed to support the development of decentralized renewable energy.