BAKU, Azerbaijan, June 2. Socar will become a
diversified energy company by 2035, Socar Vice President Afgan
Isayev said during a panel discussion held on the second day of
Baku Energy Week, Trend reports.


According to him, Azerbaijan has taken important steps toward
developing renewable energy projects, and government support for
this sector is constantly increasing.


Isayev noted that previously, documents providing for certain
tax incentives were submitted for renewable energy projects. Under
the new legislation, the term of these incentives has been extended
from 7 to 30 years, which significantly increases the financial
sustainability of the projects.


He noted that intergovernmental agreements play an important
role in the implementation of international energy projects.


“We have seen this firsthand in the implementation of the
Southern Gas Corridor, the Baku–Tbilisi–Ceyhan pipeline, and other
oil and gas infrastructure projects. A similar approach can be
applied to renewable energy and energy interconnection projects.
All the necessary mechanisms for this already exist; they simply
need to be adapted and applied to new projects,” the vice president
emphasized.


Moreover, Isaev noted that in some countries, including Turkey,
agreements concluded with the governments of host countries have
been ratified by parliaments, and he emphasized that such support
mechanisms are crucial for the implementation of major energy
projects.


Speaking also about SOCAR’s strategic transformation process,
the vice president pointed out that in 2023, the company revised
its strategy for decarbonization and overall development.







“Our goal by 2035 is to become not just an oil and gas company,
but an energy company with a balanced portfolio. This portfolio
will include both the hydrocarbon business and low-carbon sectors,”
he said.

According to Isayev, the new strategy is built on three main
pillars: decarbonizing the core business, updating the
organizational structure, and increasing investments in low-carbon
business areas, particularly in renewable energy.


He added that the company has achieved significant results in
reducing methane emissions and has already fully completed the
organizational transformation process.


The vice president also explained that SOCAR opted to partner
with leading global companies to accelerate the acquisition of
knowledge and experience in the renewable energy sector.


To this end, the SOCAR Green program was launched in March
2024.


“Thanks to the support of our partners, such as Masdar, bp,
China Energy, and PowerChina, we are rapidly expanding our
capabilities in the fields of renewable energy and energy storage
systems. This collaboration is of immense importance to us and has
already yielded highly successful results,” Isayev stressed.