Baku, February 17, AZERTAC

Efgan Nifti, Chief Executive Officer and board member of the Caspian Policy Center (CPC), was interviewed by the Azerbaijan State News Agency (AZERTAC).

CPC is an independent, nonprofit research think tank based in Washington D.C. Economic, political, energy and security issues of the Caspian region constitute the central research focus of the Center.

-How do you assess Azerbaijan's current role as a regional energy hub?

-While being energy producer itself, Azerbaijan also sits at the crossroads of energy rich countries and big energy consumers including European Union and Turkey. Its strategic geographic location provides a unique opportunity to serve as both supplier and transit for energy. This strategic role goes beyond hydrocarbons and extends to both renewable energy and critical minerals that are essential for secure and sustainable energy transition.

- Azerbaijan has long been a key player in the oil and gas industry. How do you see the country's energy sector developing in the next decade, especially given the growing demand for renewable energy?

-Azerbaijan has immense potential for wind and solar energy given its climate and geography. Utilization of these potential with international and local investment will be key in matching growing demand for renewable energy. Recent agreements with Gulf countries and energy majors including BP on realizing new renewable energy projects are notable. It is also good to see Azerbaijan declared liberated territories as green energy zones.

- What role do you see Azerbaijan playing in the broader regional energy landscape, especially in the context of the South Caucasus and Europe's energy future?

-For European energy future it is important to achieve energy supply diversification. Azerbaijan together with its partners currently delivering natural gas to around 10 EU countries and planning to expand the capacity of the Southern Gas Corridor. This is important contribution to European energy security and diversification. On tope of that it is important to note recent agreements on supplying electricity to Europe via Black Sea and strategic partnership with Kazakhstan and Uzbekistan signed during COP 29 in Baku.

- How can Azerbaijan lead the transition to green energy in the South Caucasus and what challenges might it face in this process?

- Secure, sustainable and affordable energy transition is a goal for many countries but achieving this goal is not easy. Reforms on investment climate and promotion would elevate attractiveness of green energy investments in South Caucasus. Clearly recent large dollar agreements serve as a testament to Azerbaijan's success in this area but the potential is much higher.

- Azerbaijan's geographical location provides it with significant renewable energy potential. How can the country use its wind, solar and hydropower resources to transition to a greener energy future?

- Yes, indeed studies show that Azerbaijan has enormous renewable energy potential and this is essential in achieving energy transition goals.

To transition to a greener energy future, the country can focus on several key strategies:

– Developing wind and solar farms, particularly in the Caspian Sea and high-radiation zones, with support from international and local investors.

-Modernizing the power grid to integrate renewables efficiently and ensure stable energy distribution.

-Optimizing existing hydro resources and exploring small-scale hydro projects to complement solar and wind variability.

- Attracting global energy companies through incentives and policy reforms to accelerate renewable energy adoption.

– Strengthening energy cooperation with neighboring countries and the EU to establish Azerbaijan as a regional green energy hub.

By pursuing these steps, Azerbaijan can maximize its renewable energy resources and drive a sustainable energy transition.

- What role does the Southern Gas Corridor play in diversifying Europe's energy sources? How do you assess Azerbaijan's role within the Southern Gas Corridor initiative and its impact on the energy map of Europe and Asia?

- Azerbaijan is one the of the key suppliers of secure and stable natural gas to Europe along with supplies of US LNG. These two factors helped Europe to diversify its import dependence on a single supplier significantly. Southern Gas Corridor will continue to play a very vital role in this regard. I believe that further expansion of its capacity is necessary and looking forward to see continued US support in this regard during incoming new US administration.