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Nazrin Abdul

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In an era marked by shifting geopolitical dynamics, energy security has become a critical global concern. The growing urgency to reduce dependence on Russian energy, particularly among European nations, has redefined the structure of global energy trade. These developments underscore a new reality: energy diversification is no longer optional, but essential to national security. For countries unable to meet their energy needs domestically, overreliance on a single external supplier presents a clear strategic vulnerability. In response, states around the world are rebalancing their energy strategies by broadening supply sources and investing in alternative energy technologies.

Azerbaijan has adeptly navigated this evolving landscape, not only preserving its established role as a reliable energy partner but also seizing the opportunity to become a significant player in the renewable energy sector. By leveraging its geographic position, energy infrastructure, and policy direction, the country is now expanding beyond fossil fuels to produce and export clean energy solutions.

Within this broader context, Azerbaijan has taken decisive steps toward building a sustainable future, with a growing focus on developing a robust green economy as part of the country's national strategy. At the core of this transformation is the government's commitment to reducing greenhouse gas emissions by 40% by 2050 and establishing a "net zero" emission zone in the liberated territories. These objectives underscore the country's alignment with global climate goals and its ambition to play a proactive role in the energy transition.

This ambitious goal is complemented by large-scale projects designed to not only reduce Azerbaijan's carbon footprint but also position the country as a leader in renewable energy production. The recent advancements in renewable energy sources in Azerbaijan are not only crucial for domestic use but also represent an opportunity for the country to export green energy to Europe, signalling its potential to become a significant player in the global energy market.

Speaking at the Baku Energy Forum, Energy Minister Parviz Shahbazov announced that Azerbaijan is officially entering the first full phase of its green energy transformation. Over the next two years, the country plans to commission ten new solar and wind power plants, significantly boosting its installed green energy capacity.

“We are expanding our diversification not only in terms of supply sources and routes, but also across different types of energy,” Shahbazov stated. “The initial development phase of green energy will be completed in the next two years, with ten solar and wind power plants coming online.”

Among the key projects highlighted:

- A 240 MW wind power plant is expected to be fully operational by the end of 2025.
- Construction will begin this year on three solar power plants totalling 200 MW.
- Preparations are also underway for a 100 MW floating solar power plant, representing a step into innovative renewables infrastructure.

Azerbaijan is projected to invest $2.7 billion in these projects by 2027, and according to Shahbazov, these developments will increase the share of renewables in Azerbaijan’s installed energy capacity to 33.7% by 2027, with further targets of 38% by 2030 and 42.5% by 2035.

Current projects underway: Scaling up fast

As of mid-2025, Azerbaijan has at least eight major renewable energy projects under construction or entering advanced planning stages, totalling approximately 2, 210 MW in new capacity: (Click here to view the interactive pie chart.)

Garadagh Solar (230 MW) – operational since October 2023 - cuts 200000 tonnes of emissions annually
Bilasuvar Solar (445 MW) – under construction, slated for launch by 2026
Neftchala Solar (315 MW) – under construction
Absheron–Garadagh Wind (240 MW) – in development
Khizi–Absheron Wind (240 MW) – full capacity expected by November 2025
bp’s Shafag Solar in Jabrayil (240 MW) – to be completed by 2026
Nobel Energy’s Nakhchivan Solar (400 MW) – phased until 2027
Nobel Energy’s Jabrayil PV Plant (100 MW) – first phase of 50 MW by 2027

These projects are strategically located to support both national needs and energy exports to Europe, as Azerbaijan seeks to diversify beyond oil and gas.

To solidify its position as a regional clean energy exporter, Azerbaijan is collaborating with Georgia, Romania, and Hungary to develop Caspian-Black Sea-Europe Green Energy Corridor - a 1 GW HVDC interconnector that will deliver green electricity directly to European grids. This landmark project aligns Azerbaijan’s infrastructure development with EU decarbonization goals, reinforcing its geopolitical importance in the future energy landscape.

Looking beyond 2027: A decade of green expansion

In its second renewable energy phase (2027–2030), Azerbaijan plans to implement at least 10 more large-scale projects, contributing an estimated 6 GW in new capacity. This includes offshore wind farms, expanded onshore solar and wind, and energy storage solutions. Notably, around 4 GW of this capacity is expected to be dedicated to energy exports, creating new economic and strategic opportunities.

In parallel, Azerbaijan is expanding its hydropower portfolio, particularly in Garabagh and East Zangazur, where 32 plants (270 MW) are currently operational, and 28 more small hydro projects are under construction.

Azerbaijan’s energy transition is gaining momentum, backed by billions in investment, a growing portfolio of solar and wind power plants, and international collaboration. From a fossil fuel powerhouse to a regional green energy hub, the country is positioning itself as a leader in clean energy, both in the Caspian region and beyond. With clear deadlines, rising renewable targets, and a focus on innovation, Azerbaijan’s transformation is not only strategic but also vital in a climate-constrained world.