Azerbaijan unveils $3 billion renewable energy strategy Green future targets

Azerbaijan plans to invest approximately $3 billion in renewable energy projects by 2027, with $2.8 billion earmarked specifically for the sector, according to Fagan Abdurahmanov, head of the Renewable Energy Zones Development Department at the Azerbaijan Renewable Energy Agency (AREA). 

Abdurahmanov made the announcement on November 15 at the Energy Transition Investment Forum for Central Asia, held as part of COP29, Caliber.Az reports.

"By 2027, investments of around $2.8 billion are planned for the renewable energy sector," Abdurahmanov said.

He also noted that one of Azerbaijan's ambitious goals is to achieve a 30% share of renewable energy in the country’s overall energy balance by 2030.

"This transition, despite all the challenges, is a crucial step toward achieving long-term sustainability and energy security. We understand that this is not an easy task, but Azerbaijan has demonstrated that commitment and innovation can transform national energy strategies," Abdurahmanov emphasized.

As part of its energy transition, Abdurahmanov announced that Azerbaijan plans to build and integrate eight major solar and wind power plants into the national energy grid, with a total capacity of approximately 2 GW.

"These 2 GW are not just a number but a carefully calculated figure based on an assessment conducted by an American company. A Turkish consulting company has also confirmed this data. This figure represents the volume of renewable energy that our grid will be able to integrate by 2027, taking into account some necessary modernizations and improvements," Abdurahmanov concluded.

It should be noted that on November 15, the State Oil Company of Azerbaijan (SOCAR), Masdar (UAE), and Saudi Arabia's ACWA Power signed a Memorandum of Understanding at COP29 to collaborate on the development of 3.5 GW of wind power in Azerbaijan’s Caspian Sea sector.

The agreement was signed by SOCAR President Rovshan Najaf, Masdar Executive Director Mohammed Jamil Al-Ramahi, and ACWA Power CEO Marco Arcelli.

The project will mark the construction of Azerbaijan's first offshore wind farms.

This new agreement builds on the existing collaboration between the parties, which also includes plans for renewable energy projects in Nakhchivan with a combined capacity of 500 MW.

By Tamilla Hasanova