Great attention is paid in the Republic of Azerbaijan to the development of alternative and renewable energy. Increasing the share of alternative and renewable energy sources in the energy balance, sustainable electricity supply to consumers, reducing technical and technological losses by creating generation sources close to consumers, and ensuring the effective management of available resources are among the priorities of reforms in the electricity sector. Important work has been done recently in terms of the effective use of alternative and renewable energy sources and the creation of a modern infrastructure in this area. All this enabled expanding the use of alternative and renewable energy in the economy and social spheres, created all conditions for the implementation of measures related to the production and consumption of such energy. The State Program on the Use of Alternative Energy Sources was adopted in 2004 as a result of the measures taken in this field. State Agency for Alternative and Renewable Energy Sources was established in 2009, and later by the Decree dated February 1, 2013 of the President of the Republic of Azerbaijan the Agency was restructured and Azeralternativenergy Limited Liability Company was established under the Agency in order to improve the management system in the field of alternative and renewable energy in the country. Strategic Plan of the State Agency for Alternative and Renewable Energy Sources of the Republic of Azerbaijan for 2015-2018 was approved by the order dated December 10, 2014 of the State Agency for Alternative and Renewable Energy Sources of the Republic of Azerbaijan. Currently, the Agency has been reorganized and operates as the State Agency for Renewable Energy under the Ministry of Energy.