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Nazrin Abdul

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As the global energy landscape undergoes a profound transformation, Azerbaijan is emerging not only as a traditional energy supplier but also as a key architect of the region’s green transition. Baku’s ability to adapt to shifting geopolitical and market dynamics has enabled the country to leverage its geographic position, modernized energy infrastructure, and strategic partnerships to expand into renewable energy production and sustainable connectivity.

In recent years, Azerbaijan has intensified efforts to build a resilient green economy, embedding sustainability into its long-term development agenda. Central to this strategy is the government’s commitment to reducing greenhouse gas emissions by 40% by 2050 and creating “net-zero emission” zones in the liberated territories. These goals firmly align the country with global decarbonization trends and demonstrate its ambition to assume a proactive role in the global energy transition.

A major breakthrough in regional energy cooperation occurred at COP29 in Baku, where the presidents of Azerbaijan, Kazakhstan, and Uzbekistan signed a landmark agreement to establish the Trans-Caspian Green Energy Corridor. This initiative represents the first attempt to integrate the electricity systems of Central Asia and the South Caucasus, ultimately linking them to European energy markets.

A joint venture — the Green Corridor Alliance, headquartered in Baku — has been created to lead the effort, with feasibility studies supported by financing from the Asian Development Bank and the Asian Infrastructure Investment Bank. Work is scheduled to begin in November 2025, marking the first operational step toward a corridor that could redefine regional energy flows.

The corridor is more than an infrastructure project; it is a geopolitical instrument that strengthens interdependence between Caspian states and positions Azerbaijan as a strategic bridge in the emerging Eurasian green energy architecture. By enabling Central Asia to export renewables westward, Azerbaijan consolidates its transit role while attracting new investment and political visibility.

Speaking during the parliamentary discussion on the 2026 state budget, Economy Minister Mikayil Jabbarov highlighted that Azerbaijan has attracted $2.8 billion in foreign and local investment for eight industrial-scale solar and wind power plants with a combined capacity of around 2 GW, either completed or planned by 2027. These investments, he stressed, are not only driving economic growth but also laying the foundations for a diversified and sustainable energy ecosystem.

The establishment of the “Caspian–Black Sea–Europe” and “Central Asia–Azerbaijan” green energy corridors further reinforces Azerbaijan’s profile as a reliable energy exporter and an increasingly attractive destination for green investment capital.

At the 1st Azerbaijan International Investment Forum (AIIF 2025), Deputy Minister of Energy Orkhan Zeynalov emphasized that the success of both traditional and renewable energy initiatives hinges on reliable transit routes, regional integration, and a predictable investment climate. Azerbaijan is currently advancing several large-scale projects within its borders and through cross-border cooperation.

Regional interconnection lines — linking Central Asia, Azerbaijan, the Caspian, the Black Sea, Georgia, Turkiye, and Bulgaria — are expected to complement one another as part of an integrated East–West energy corridor. These projects collectively enhance energy security, diversify supply routes, and deepen strategic ties between Eurasian partners.

Interest from Saudi Arabia, including a preliminary memorandum signed by the Saudi Electricity Company on the transmission component of the green energy corridor, indicates widening international engagement and strengthens the project’s potential viability.

In addition to green energy cooperation, Azerbaijan and Kazakhstan recently held talks on expanding collaboration in both hydrocarbons and renewables — signaling a multifaceted approach that balances current energy realities with future requirements. A key element of this dialogue is the growing interest in green hydrogen, which is increasingly viewed as a strategic fuel of the future due to its ability to store renewable energy, decarbonize hard-to-abate sectors, and support long-distance energy transport across regions such as the Caspian.

Taken together, these developments point to a pivotal shift: Azerbaijan is steadily positioning itself as a central node in the emerging Eurasian green energy map. The country’s ability to combine domestic renewable advancements, digital connectivity projects, international partnerships, and strategic corridor development has elevated its role far beyond that of a traditional energy supplier.

As Central Asia seeks new export routes and Europe pushes for increased access to clean energy, Azerbaijan stands at the intersection — a connector, facilitator, and increasingly, a leader in the regional green transition.