“Promotion of Decentralized Renewable Energy Solutions (DRES) in Azerbaijan” is a project supported by the DENA (German Energy Agency), the Ministry of Energy of Azerbaijan, and executed by EcoEnergy Consulting LLC. In this project, we analyze and develop recommendations in the context of promotion of decentralized renewable energy supply and proposing selected renewable energy application areas for the Republic of Azerbaijan. The overall objective of the project is to identify the application areas for decentral RES solutions and elaborate the recommendations for instruments to support decentral renewable energy in Azerbaijan. The local market potentials and application areas for decentralized RES (renewable energy supply) are identified and analyzed. Moreover, a list of recommendations for the establishment of dedicated support mechanisms is created. In the last stage, 4 pilot project proposals for different RES sources for electricity and heat supply are created.