The economic aspects of developing renewable energy in Azerbaijan's Karabakh region after 2020

With the beginning of the economic reconstruction of Azerbaijan’s Karabakh region in 2020, there is a possibility for the development of a new tool for the revitalization of the region – renewable energy. This study focuses on the economic aspects of the development of renewable energy in Karabakh, with special emphasis on their contribution to regional revitalization, energy security, and economic diversification. The Karabakh region has tremendous potential for solar, wind, and hydro energy use, and therefore it is possible to integrate the system of renewable energy into newly constructed infrastructure in a cost-efficient and technically advanced way. The development of renewable energy sources would also add to capital investments, create jobs, and build up associated sectors such as construction, services, and grids. Finally, the creation of «green energy zones» in Karabakh is likely to attract investments through policies and cooperation with private sectors. From an economic point of view, the development of renewable energy sources will reduce the cost of energy in the long term, make the country less dependent on fossil fuels, and contribute to the security of energy supply. The paper also points out the most important economic challenges in this sector, such as high start-up costs, infrastructure, and the need for highly qualified personnel. Despite these factors, the development of renewable energy in Karabakh is an important economic opportunity for Azerbaijan.

Keywords: green energy zone; solar and wind power; Karabakh region; Azerbaijan; renewable energy; and economic development.