Azerbaijan, Uzbekistan, Kazakhstan To Continue Leading Regional Energy Transition In 2026 - Moody's

(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 11. Azerbaijan, Uzbekistan and Kazakhstan will continue leading the regional energy transition in 2026, Trend reports via Moody's.

“Growing intraregional trade and strong economic growth are also driving increasing demand for energy, spurring further economic diversification and integration by unlocking the region's vast potential for renewables and improving regional energy connectivity. We expect Azerbaijan, Uzbekistan and Kazakhstan to continue leading this shift in 2026 as they develop competitive electricity markets and attract private investment in renewable energy. We also expect hydropower-rich countries like Tajikistan and the Kyrgyz Republic to scale up investments in dam projects, supported by IFIs, to expand electricity exports to the region,” Moody's said in its latest report.

Meanwhile, the rating agency notes that hydrocarbon resources will continue to underpin economic activity and wealth accumulation in Kazakhstan and Azerbaijan.

Moreover, analysts from Moody's point out that in particular, the transport, logistics and construction sectors of sovereigns both in Central Asia and the Caucasus will continue to benefit from increasing activity along the Middle Corridor, a strategic trade and transit network linking China to Europe.

The data from Azerbaijan's energy ministry reveals that technical potential of the country's onshore renewable energy sources is 135 GW and offshore is 157 GW. The economic potential of renewable energy sources is estimated at 27 GW, including 3 000 MW of wind energy, 23 000 MW of solar energy, 380 MW of bioenergy potential, 520 MW of mountain rivers.

Power plants with a total capacity of 1829.6 MW operate in our country on renewable energy sources. 65 hydroelectric power plants with a total capacity of 1443.5 MW, 5 wind power plants of 63.5 MW, 9 solar power plants of 278.2 MW, a BIO power plant of 37 MW and 3 hybrid power plants of 7.3 MW are being operated. Renewable energy sources account for about 18.8% of the total energy capacity.

By 2027, it is planned to implement green energy projects with a total capacity of more than 2 gigawatts. Among these projects, wind and solar plants implemented jointly with local and international partners are of particular importance:

Among major green energy initiatives are Garadagh Solar Power Plant, Khizi-Absheron Wind Power Plant, Shafag Solar Power Plant, Mega project, Gobustan Solar Power Plant, Ufug and Shams solar power plants, Floating solar panels project and others.

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