One of the main directions in the course of economic development of the liberated territories defined by the President of the Republic of Azerbaijan Ilham Aliyev as the transformation of liberated territories into a "green energy" zone. President of the Republic of Azerbaijan Ilham Aliyev put forward a strategic vision for the establishment of a Green Energy Zone in the liberated territories and stated that the liberated territories has sufficient renewable energy potential.

According to the Order No.2620 dated 3 May 2021 by the President of the Republic of Azerbaijan on measures to establish a "green energy" zone in the liberated territories of the Republic of Azerbaijan, an international consulting company was involved. In cooperation with the Japanese company TEPSCO, a relevant Concept document has been prepared.

The purpose of the Concept document is to provide the area with environmentally friendly green energy by using the existing high renewable energy potential in the liberated territories and to formulate proposals by studying the prospects for the application of environmentally friendly and energy efficient green technologies. 

For this purpose, energy demand models in the liberated areas have been developed by using different scenarios.

As part of the Green Energy Zone, electricity generation from renewable energy sources, energy efficiency measures, use of electric vehicles, installation of renewable energy facilities (especially solar panels) on the roofs of buildings, use of solar energy based LED lamps in the lighting of streets and roads, use of renewable energy technologies in heating, cooling and hot water supply, application of smart energy management, measures such as waste energy targeted management are designed.

At the same time, at the UN Climate Change Conference (COP2021) held in Glasgow in November 26, the government of Azerbaijan announced the intention to reduce greenhouse gas emissions by 2050 by 40% compared to the base year and create a "net zero emission" zone in the liberated territories. This, in turn, will contribute to the transformation of the liberated territories into a "green energy" zone.

Preliminary observations show that there is favorable potential for solar energy projects in Gubadli, Zangilan, Jabrayil and Fuzuli regions, and this technical potential is estimated at more than 7200 MW. At the same time, according to preliminary studies, the technical potential of wind energy in the mountainous areas of Lachin and Kalbajar in the amount of 2000 MW was determined. In addition, there is great hydropower potential in the tributaries of Terterchay, Hakari River and these rivers.

Particular importance is attached to the construction of the energy infrastructure and ensuring energy security as an important part of the restoration process of the liberated territories. In accordance with this goal, as part of the restoration of power generating capacities with a capacity of 20.2 MW, 4 hydroelectric power plants restored in Lachin, Kalbajar and Sugovushan have already been put into operation:

• ”Gulabird " HPP- 8 MW;
• "Sugovushan-1" SHPP -4.8 MW;
• "Sugovushan-2" SHPP -3.0 MW;
• "Kalbajar - 1" SHPP -4.4 MW.

At the same time, the construction of two hydropower plants on the Aras River in the Jabrayil region, with a total capacity of 140 MW for the Azerbaijani side (100 MW "Khudaferin", 40 MW "Giz Galası") is underway.

Also, the implementation of a wind power plant with an estimated capacity of 100 MW in Lachin/Kalbajar will make an additional contribution to the creation of a “Green Energy Zone” in the liberated areas.

In addition, on June 3, 2021, the Ministry of Energy of the Republic of Azerbaijan and bp signed an Implementation Agreement on the evaluation and implementation of the project for the construction of a 240 MW solar power plant in the Zangilan/Jabrayil zone.