Azerbaijan Offers Investors Auctions And Direct Deals To Boost Renewables

Azerbaijan is set to significantly boost electricity production from renewable energy sources in the coming years, according to Rana Humbatova, Deputy Director of the State Agency on Renewable Energy Sources under the Ministry of Energy, Azernews reports.

Speaking at Baku Climate Action Week 2025, she highlighted that as of the end of 2024, the share of“green energy” in the country's energy mix has already reached 13.5% and is expected to grow further with the implementation of new projects.

Humbatova explained that Azerbaijan offers investors two main mechanisms for participation in the renewable sector: public auctions and direct negotiations. The first auction was held within the framework of COP29, where the Chinese company Universal won the rights to develop a 400 MW solar power plant at a competitive rate of just 3.54 cents per kilowatt-hour.

Strategic partners in Azerbaijan's green energy drive include major international companies such as Masdar (UAE), ACWA Power (Saudi Arabia), and bp (UK). Notably, in 2023, a 230 MW solar power plant developed in partnership with Masdar was successfully commissioned, and another 240 MW wind power project with ACWA Power is scheduled to be launched in the near future.

Humbatova also emphasized that increasing the share of renewables will contribute not only to higher installed capacity but also to greater actual volumes of clean energy production across the country.

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