Energy is an essential factor in providing and improving people’s daily welfare requirements and it must be produced definitely. Energy is obtained from both traditional and alternative resources. However, these resources are not equally distributed globally. Also, some countries are categorized as energy-rich because of their hydrocarbon reserves, while others are rich in renewable energy resources.

Although most of the energy reserves used throughout the world is obtained from traditional energy sources, it is also true that these reserves are not environmentally friendly. Therefore, to protect the environment and prevent excessive consumption of primary energy resources, countries are trying to meet their national requirements with renewable energy sources. However, it is known that although alternative energy reserves are environmentally friendly, superior technology and financial means are needed to exploit them sufficiently. In this context, it is appropriate to evaluate the potential of green energy, which has become one of the most researched issues.

Removing carbon dioxide from the atmosphere, traditional energy resources such as coal, gas, and oil have begun to be replaced by sustainable energy sources. At the same time, it should be emphasized that “green” and “renewable” energy do not necessarily mean the same thing. Although the terms are frequently encountered together and are closely related, they do have small but important differences. Therefore, the concept of green energy will be discussed, and then the differences between the two terms will be identified.

The world’s increasing energy demands and countries’ attempts to utilize the best management strategies to meet this demand are well known. Azerbaijan is one of these countries. In terms of Azerbaijan, the green energy potential of the Karabakh region will be discussed; then state-supported green energy projects will be examined in the post-war period. Nagorno-Karabakh is a region rich in green energy resources. Therefore, the diversification of Azerbaijan’s energy production resources is an important issue.

It is possible to list many advantages on this axis. The transition to inexhaustible energy will also reduce the number of carbon emissions released into the atmosphere and ensure environmental sustainability. In addition, natural gas, which is the main source of electricity production, will be saved. It will have a positive effect on increasing the country’s foreign exchange earnings through expanding export opportunities. At the same time, renewable energy sources can meet the energy needs of areas where natural gas extraction is technically impossible or economically inefficient. On this axis, considering the high mountainous terrain of Kalbajar and Lachin districts, the use of renewable energy resources will be more efficient.

The development of renewable energy sources is also necessary for the sustainability of Azerbaijan’s energy system. Attracting new investments to liberated lands and exploiting the renewable energy potential will play a vital role in Azerbaijan’s international recognition as green energy. Hydroelectric dams are expected to account for most of the renewable energy generation in the Karabakh region. Moreover, the implementation of renewable energy projects across Karabakh will provide the Azerbaijani leadership’s vision to reduce the country’s dependence on fossil fuel–based electricity. These plans are also in line with Baku’s plans to transform Karabakh’s war-damaged lands into smart cities and villages.