Azerbaijan’s clean energy plans advance as investment & cooperation expand

Azerbaijan is on track to achieve its 2030 targets by reducing carbon emissions with the help of Chinese technology. Azerbaijan’s agenda, in particular, reflects a decisive shift toward green energy. The country has set ambitious goals: increasing the share of renewable energy in its electricity generation to 30%, cutting greenhouse gas emissions by 40% compared to 1990 levels, transforming economic regions into decarbonization zones, and building a “green energy hub” to diversify its system. Alongside these goals, Baku is intent on deepening global climate cooperation, joining initiatives such as the Global Methane Pledge while introducing its own energy and finance pledges.
The government’s motivation is clear. While Azerbaijan has long been a leading supplier of “blue fuel” in global energy markets, it is now treating the green transition not only as a response to ecological challenges but also as a way to secure future economic dividends and maintain its leadership in exports.
The scale of Azerbaijan’s renewable energy potential is vast: more than 27 gigawatts of wind and solar energy on land, 157 gigawatts of offshore wind in the Caspian, and over 10 gigawatts in the liberated territories of Garabagh and Eastern Zangazur. It is in this context that China has emerged as a strategic partner in realising these resources.
President Ilham Aliyev’s September 2 meetings in Tianjin underscored the importance of this partnership. Talks with PowerChina Executive Vice President Xi Yinfen highlighted cooperation in green energy, water management, electricity, and smart systems, while discussions with Sichuan Sunsync Photovoltaic Technology focused on establishing a solar panel plant in the Alat Free Economic Zone. These steps follow on from the six renewable energy agreements signed during Aliyev’s April state visit to China, which include projects for solar, wind, offshore wind, and storage systems totalling several gigawatts.
At the same time, Azerbaijan is expanding domestic green projects. The Khizi-Absheron Wind Power Plant, built by ACWA Power, has already installed nine turbines and will provide one billion kilowatt-hours annually. This will save 220 million cubic meters of gas, prevent 400,000 tons of carbon emissions, and supply electricity to 300,000 households.
Against this backdrop, talking to Azernews, MP Vugar Bayramov emphasised the strategic importance of foreign investment:
“The meetings held with the heads of leading companies within the framework of President Ilham Aliyev's visit to China will contribute to attracting more investment to Azerbaijan. One of the new goals of the new era is to attract more foreign investment to the non-oil sector. In this context, discussions with companies of leading countries mean new investment opportunities for non-oil sectors.
Of course, among the issues discussed during the meetings of the President, attracting Chinese investments to the Azerbaijani economy, mutual projects, technology transfer and other important points for both Azerbaijan and the region occupy a special place.
It is expected that, as a result of the meetings held by the President, conditions will be created for more investment, especially in the non-oil sector. This is important, first of all, in terms of strengthening cooperation in the field of ‘green energy’. Because Azerbaijan intends to deepen cooperation with China in this direction.
Recent meetings and signed agreements have also opened up new opportunities for expanding cooperation. On the one hand, Azerbaijan is a country that pays great attention to the field of ‘green energy’ in the region, especially in the South Caucasus. On the other hand, our country aims to increase the share of ‘green energy’ in the total energy balance to 35 per cent by 2030 and reduce carbon emissions by 40 per cent.
From this perspective, the analyses conducted show that cooperation with China in the field of ‘green energy’ will, on the one hand, create conditions for increasing production capacity, and on the other hand, expand Azerbaijan's export opportunities. It is expected that as a result of this cooperation, it will be possible to realise the ‘green energy’ export that has been planned and discussed for a long time.”
Azerbaijan’s energy transition is therefore not only about decarbonization but also about economic strategy, investment attraction, and geopolitical positioning. With China as a core partner, and COP29 as a global platform, Baku is shaping a green energy roadmap that could redefine both its domestic economy and its role in international energy markets.
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