In an era where the global energy landscape is defined by decarbonization, supply diversification, and geopolitical rebalancing, Azerbaijan is emerging as a key player, not only because of its abundant energy resources but also due to its strategic geography and expanding portfolio of clean energy partnerships. In the aftermath of hosting COP29 in Baku in 2024, Azerbaijan has accelerated its transformation from a traditional fossil fuel exporter to an emerging regional clean energy powerhouse. With sweeping renewable energy projects, high-level international partnerships, and strategic infrastructure development, Baku is positioning itself as a key connector in the evolving green energy architecture stretching from Central Asia to Europe.

At the center of Azerbaijan's green transformation is a state-led strategy driven by infrastructure development, regional diplomacy, and long-term energy integration. As the country's Energy Minister, Parviz Shahbazov has articulated the operational roadmap behind this transition, emphasizing the importance of cooperation, planning, and global partnerships in delivering on national goals.

“Having energy resources alone is not enough,” Shahbazov noted. “You need to build strong and reliable relations with your neighbors... Without cooperation, none of the energy security projects would be possible.”

Despite record-high investments in renewables globally, the pace of deployment remains insufficient. According to the International Renewable Energy Agency (IRENA), 582 GW of new renewable capacity was added globally in 2024, yet this falls short of the 16.6% annual growth rate needed to triple renewable energy generation by 2030.
Minister Shahbazov emphasized that Azerbaijan is not only developing renewable energy capacity but doing so through a systematic and grid-conscious approach.

“The rapid development of renewable energy requires a parallel strengthening of transmission networks, energy storage, and system readiness. Azerbaijan is pursuing this integration from the very first stage,” he noted.

The flagship AZURE project, supported by the World Bank, reflects this vision. It includes 2 GW of renewable generation, 250 MW of battery storage, and the construction of high-voltage transmission lines and the Navahi 500/300 kV substation, enhancing the resilience of the national grid and facilitating future exports.

Azerbaijan aims to increase the share of renewables in its installed power generation capacity to 38% by 2030. To meet this goal, the government is working on an additional 700 MW of onshore and offshore renewable projects, developed in collaboration with key international partners.

Cooperation with China's EPPEI (Electric Power Planning and Engineering Institute) is already underway to assess the technological and economic capacity of the national grid to absorb increasing volumes of renewables.

“This phased and responsible approach ensures not only production but also sustainable integration into the national energy system,” said Parviz Shahbazov.

Azerbaijan has cultivated a multi-layered ecosystem of green energy partnerships, featuring major global players such as: Masdar (UAE); ACWA Power (Saudi Arabia); bp; TotalEnergies (France); China Datang, PowerChina, China Energy; SOCAR Green, Nobel Energy, and others. These partnerships have already materialized into concrete projects and strategic agreements.

In April 2025, Azerbaijan and China signed a Comprehensive Strategic Partnership Agreement, covering wind, solar, battery storage, hydro-accumulation, and grid infrastructure. A minimum of 1,000 MW of renewable energy projects with Chinese companies is expected to be commissioned by 2032. Meanwhile, a Memorandum of Understanding signed in Washington in August 2025 emphasized renewable infrastructure and regional grid interconnections as key focus areas under the US-Azerbaijan Strategic Partnership Charter.

One of the most consequential components of Azerbaijan's green energy agenda is the development of the Zangezur Corridor, which restores uninterrupted land connectivity between mainland Azerbaijan and Nakhchivan. But beyond logistics, this corridor is evolving into a green energy bridge. According to Minister Shahbazov, the corridor will be essential in transmitting renewable electricity from Garabagh and Eastern Zangazur to Turkiye and European markets, either directly or through Armenia.

The government is currently constructing:

- A 400/330/110/35/10 kV converter substation in Nakhchivan

- A 330 kV Jabrail–Nakhchivan line

- A 400 kV Nakhchivan– Turkiye line

This infrastructure not only integrates Nakhchivan into Azerbaijan's grid but also positions the region as a key node in the“Azerbaijan–Turkiye–Europe Energy Hub”.

Azerbaijan is also tapping into its massive offshore wind potential in the Caspian Sea. According to Shahbazov, 6 GW of offshore wind is planned, with 4 GW earmarked for export by 2032 via the Caspian–Black Sea–Europe Green Energy Corridor. This project is backed by the Caspian Breeze Consortium (Masdar, ACWA Power, SOCAR Green) and several Chinese partners. A feasibility study is expected by early 2026. A joint venture, GECO Green Energy Company, has already submitted the project for inclusion in the ENTSO-E Ten-Year Network Development Plan (TYNDP), a critical step toward obtaining PCI/PMI status in the EU.

At COP29 in Baku, the presidents of Azerbaijan, Kazakhstan, and Uzbekistan signed a historic agreement launching the Trans-Caspian Green Energy Corridor. This marks the first attempt to link the electricity systems of Central Asia and the South Caucasus. A joint venture-the Green Corridor Alliance, headquartered in Baku-was formed to lead the project. With financial support from the Asian Development Bank and Asian Infrastructure Investment Bank, feasibility studies are set to begin in November 2025.

“This corridor is consistent with our policy of developing the Central Asia–South Caucasus–Caspian region as an integrated geopolitical space,” Shahbazov said.

Hydrogen also features prominently in Azerbaijan's long-term strategy. A National Strategic Overview and Action Plan on hydrogen production, consumption, and export is currently being finalized. “Hydrogen is an integral part of Azerbaijan's green development and energy supply agenda,” noted Shahbazov.

Simultaneously, geothermal energy - often overlooked - has been identified as a viable source of clean power. Azerbaijan's geothermal heat potential is estimated at 571.2 MW, with pilot projects already underway in Bibiheybet, Kurdamir, and Masalli, some of which creatively repurpose decommissioned oil wells for clean energy generation.

Energy efficiency is the“silent enabler” of Azerbaijan's green agenda. The government is rolling out the Energy Efficiency Information System (EEIS) - a digital platform for monitoring and managing consumption across public and private sectors. To support financing, the Energy Efficiency Fund has been launched to provide: Preferential loans; Subsidies for efficient technologies; Piot project support. Seventeen technical regulations have been developed to guide eco-design and energy labeling, particularly for energy-intensive products.

From its resource-rich past to its decarbonized future, Azerbaijan is undergoing a profound transformation. The country is laying the physical and diplomatic groundwork to become not just an energy producer - but a transit, export, and policy leader in the clean energy age. With its integration of Garabagh, Eastern Zangazur, and offshore Caspian resources into global markets, Azerbaijan is redefining the geography of green energy. And in doing so, it is creating a model for how fossil-fuel-rich nations can reorient themselves in the era of net-zero.

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